DuPont Decomposition
Why does RAJSREESUG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.1% = 1.3% × 0.93 × 2.60
Latest: FY2025
Profitability
Net Margin
1.3%
-0.7% →1.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.50x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.60x
3.59x →2.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 4 years. Driven by net margin improving (-0.7% → 1.3%), asset turnover improving (0.50x → 0.93x), leverage falling (3.59x → 2.60x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.7% | 0.50 | 3.59 | -1.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.2% | 0.93 | 3.27 | -3.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 0.95 | 3.04 | 5.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.3% | 0.93 | 2.60 | 3.1% |
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.