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
183.6% = 410.1% × 0.24 × 1.86
Latest: FY2025
Profitability
Net Margin
410.1%
9.1% →410.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.26x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
2.83x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 176.8 pp over 3 years. Driven by net margin improving (9.1% → 410.1%), leverage falling (2.83x → 1.86x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.1% | 0.26 | 2.83 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 9.8% | 0.23 | 3.07 | 6.9% |
| FY2025 | ₹0Cr | ₹0Cr | 410.1% | 0.24 | 1.86 | 183.6% |
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.