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
13.5% = 8.9% × 0.80 × 1.89
Latest: FY2026
Profitability
Net Margin
8.9%
10.2% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
1.17x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
2.07x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.2 pp over 5 years. Driven by net margin declining (10.2% → 8.9%), asset turnover declining (1.17x → 0.80x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.2% | 1.17 | 2.07 | 24.7% |
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 2.15 | 2.39 | 36.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.8% | 1.73 | 1.71 | 20.2% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 1.26 | 1.48 | 13.1% |
| FY2026 | ₹0Cr | ₹0Cr | 8.9% | 0.80 | 1.89 | 13.5% |
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.