DuPont Decomposition
Why does REFEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.1% = 6.5% × 1.37 × 1.48
Latest: FY2025
Profitability
Net Margin
6.5%
10.2% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.37x
1.17x →1.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
2.07x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.6 pp over 4 years. Driven by net margin declining (10.2% → 6.5%), asset turnover improving (1.17x → 1.37x), leverage falling (2.07x → 1.48x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.2% | 1.17 | 2.07 | 24.7% |
| FY2023 | ₹0Cr | ₹0Cr | 7.1% | 2.17 | 2.39 | 36.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 1.73 | 1.71 | 20.0% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 1.37 | 1.48 | 13.1% |
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.