DuPont Decomposition
Why does RATNAVEER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 6.0% × 0.85 × 1.89
Latest: FY2026
Profitability
Net Margin
6.0%
2.2% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
1.38x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
4.68x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.8 pp over 5 years. Driven by net margin improving (2.2% → 6.0%), asset turnover declining (1.38x → 0.85x), leverage falling (4.68x → 1.89x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.2% | 1.38 | 4.68 | 14.4% |
| FY2023 | ₹0Cr | ₹0Cr | 5.2% | 1.23 | 3.67 | 23.6% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 1.15 | 2.05 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 1.20 | 2.01 | 12.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.0% | 0.85 | 1.89 | 9.6% |
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.