DuPont Decomposition
Why does RAJESHEXPO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 0.0% × 14.40 × 1.87
Latest: FY2025
Profitability
Net Margin
0.0%
0.4% →0.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
14.40x
10.17x →14.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
1.92x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.5 pp over 4 years. Driven by asset turnover improving (10.17x → 14.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.4% | 10.17 | 1.92 | 8.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.4% | 14.85 | 1.55 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 0.1% | 12.72 | 1.45 | 2.2% |
| FY2025 | ₹0Cr | ₹0Cr | 0.0% | 14.40 | 1.87 | 0.6% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.