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
7.9% = 7.2% × 0.75 × 1.47
Latest: FY2026
Profitability
Net Margin
7.2%
10.3% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.65x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.82x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.2 pp over 5 years. Driven by net margin declining (10.2% → 7.2%), leverage falling (1.82x → 1.47x).
Historical Decomposition
Last 5 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% |
| FY2026 | ₹0Cr | ₹0Cr | 7.2% | 0.75 | 1.47 | 7.9% |
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.