DuPont Decomposition
Why does RAMCOIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 10.8% × 0.34 × 1.10
Latest: FY2026
Profitability
Net Margin
10.8%
20.8% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.34x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.14x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.1 pp over 5 years. Driven by net margin declining (20.8% → 10.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.8% | 0.34 | 1.14 | 8.1% |
| FY2023 | ₹0Cr | ₹0Cr | 8.5% | 0.33 | 1.15 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 0.33 | 1.12 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 17.1% | 0.37 | 1.13 | 7.2% |
| FY2026 | ₹0Cr | ₹0Cr | 10.8% | 0.34 | 1.10 | 4.0% |
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.