DuPont Decomposition
Why does ROSSELLIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 11.1% × 0.58 × 1.62
Latest: FY2025
Profitability
Net Margin
11.1%
10.3% →11.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.65x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.82x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.8 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.3% | 0.65 | 1.82 | 12.2% |
| FY2023 | ₹0Cr | ₹0Cr | 7.9% | 1.62 | 1.22 | 15.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.6% | 0.66 | 1.26 | 0.5% |
| FY2025 | ₹0Cr | ₹0Cr | 11.1% | 0.58 | 1.62 | 10.4% |
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.