DuPont Decomposition
Why does RATNAMANI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.7% = 10.7% × 0.83 × 1.31
Latest: FY2026
Profitability
Net Margin
10.7%
10.3% →10.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
1.05x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.32x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.6 pp over 5 years. Driven by asset turnover declining (1.05x → 0.83x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.3% | 1.05 | 1.32 | 14.3% |
| FY2023 | ₹0Cr | ₹0Cr | 11.4% | 1.18 | 1.45 | 19.6% |
| FY2024 | ₹0Cr | ₹0Cr | 12.4% | 1.25 | 1.28 | 19.8% |
| FY2025 | ₹0Cr | ₹0Cr | 10.5% | 1.06 | 1.35 | 15.0% |
| FY2026 | ₹0Cr | ₹0Cr | 10.7% | 0.83 | 1.31 | 11.7% |
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.