DuPont Decomposition
Why does RAJOOENG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 13.9% × 0.51 × 1.95
Latest: FY2026
Profitability
Net Margin
13.9%
8.2% →13.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
1.15x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.95x
1.62x →1.95x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.5 pp over 5 years. Driven by net margin improving (8.2% → 13.9%), asset turnover declining (1.15x → 0.51x), leverage rising (1.62x → 1.95x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.2% | 1.15 | 1.62 | 15.3% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 0.87 | 1.66 | 10.6% |
| FY2024 | ₹0Cr | ₹0Cr | 10.8% | 0.85 | 1.79 | 16.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.0% | 0.78 | 1.99 | 23.4% |
| FY2026 | ₹0Cr | ₹0Cr | 13.9% | 0.51 | 1.95 | 13.8% |
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.