DuPont Decomposition
Why does RAYMOND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
187.8% = 241.5% × 0.47 × 1.67
Latest: FY2026
Profitability
Net Margin
241.5%
4.3% →241.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
0.83x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.67x
3.13x →1.67x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 176.8 pp over 5 years. Driven by net margin improving (4.3% → 241.5%), asset turnover declining (0.83x → 0.47x), leverage falling (3.13x → 1.67x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 0.83 | 3.13 | 11.0% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 0.99 | 2.83 | 18.3% |
| FY2024 | ₹0Cr | ₹0Cr | 176.2% | 0.07 | 2.85 | 35.5% |
| FY2025 | ₹0Cr | ₹0Cr | 392.0% | 0.25 | 2.08 | 205.4% |
| FY2026 | ₹0Cr | ₹0Cr | 241.5% | 0.47 | 1.67 | 187.8% |
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.