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
10.3% = 8.7% × 0.82 × 1.44
Latest: FY2026
Profitability
Net Margin
8.7%
17.3% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.82x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.59x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.2 pp over 5 years. Driven by net margin declining (17.3% → 8.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.3% | 0.82 | 1.59 | 22.5% |
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 0.82 | 1.70 | 20.4% |
| FY2024 | ₹0Cr | ₹0Cr | 14.4% | 0.90 | 1.55 | 20.1% |
| FY2025 | ₹0Cr | ₹0Cr | 11.5% | 0.92 | 1.45 | 15.3% |
| FY2026 | ₹0Cr | ₹0Cr | 8.7% | 0.82 | 1.44 | 10.3% |
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.