DuPont Decomposition
Why does ROSSARI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.2% = 6.2% × 1.05 × 1.72
Latest: FY2026
Profitability
Net Margin
6.2%
6.6% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
1.18x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.56x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by asset turnover declining (1.18x → 1.05x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.6% | 1.18 | 1.56 | 12.1% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 1.21 | 1.49 | 11.7% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 1.16 | 1.50 | 12.5% |
| FY2025 | ₹0Cr | ₹0Cr | 6.6% | 1.10 | 1.60 | 11.5% |
| FY2026 | ₹0Cr | ₹0Cr | 6.2% | 1.05 | 1.72 | 11.2% |
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.