DuPont Decomposition
Why does ROTO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.0% = 11.2% × 0.93 × 1.44
Latest: FY2025
Profitability
Net Margin
11.2%
16.7% →11.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.22x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.63x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.9 pp over 3 years. Driven by net margin declining (16.7% → 11.2%), asset turnover improving (0.22x → 0.93x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.7% | 0.22 | 1.63 | 6.1% |
| FY2024 | ₹0Cr | ₹0Cr | 15.6% | 0.27 | 1.55 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 11.2% | 0.93 | 1.44 | 15.0% |
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.