DuPont Decomposition
Why does RPGLIFE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
34.5% = 28.3% × 0.98 × 1.24
Latest: FY2025
Profitability
Net Margin
28.3%
8.7% →28.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
0.28x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.36x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 31.2 pp over 3 years. Driven by net margin improving (8.7% → 28.3%), asset turnover improving (0.28x → 0.98x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.7% | 0.28 | 1.36 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 10.4% | 0.25 | 1.37 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 28.3% | 0.98 | 1.24 | 34.5% |
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.