DuPont Decomposition
Why does RAYMONDLSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.4% = 0.6% × 0.44 × 1.44
Latest: FY2025
Profitability
Net Margin
0.6%
13.4% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.36x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
2.80x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.1 pp over 4 years. Driven by net margin declining (13.4% → 0.6%), leverage falling (2.80x → 1.44x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.4% | 0.36 | 2.80 | 13.5% |
| FY2023 | ₹0Cr | ₹0Cr | 28.1% | 0.41 | 2.23 | 25.6% |
| FY2024 | ₹0Cr | ₹0Cr | 40.7% | 0.50 | 1.35 | 27.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 0.44 | 1.44 | 0.4% |
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.