DuPont Decomposition
Why does RAMKY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.5% = 14.7% × 0.45 × 1.91
Latest: FY2026
Profitability
Net Margin
14.7%
1.6% →14.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.45x
0.32x →0.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
16.50x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.0 pp over 5 years. Driven by net margin improving (1.6% → 14.7%), asset turnover improving (0.32x → 0.45x), leverage falling (16.50x → 1.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.6% | 0.32 | 16.50 | 8.6% |
| FY2023 | ₹0Cr | ₹0Cr | 66.9% | 0.37 | 3.29 | 80.8% |
| FY2024 | ₹0Cr | ₹0Cr | 14.3% | 0.51 | 2.49 | 18.0% |
| FY2025 | ₹0Cr | ₹0Cr | 9.2% | 0.49 | 2.20 | 9.9% |
| FY2026 | ₹0Cr | ₹0Cr | 14.7% | 0.45 | 1.91 | 12.5% |
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.