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
19.0% = 16.3% × 0.89 × 1.31
Latest: FY2026
Profitability
Net Margin
16.3%
11.8% →16.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
1.27x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.35x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 5 years. Driven by net margin improving (11.8% → 16.3%), asset turnover declining (1.27x → 0.89x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 1.27 | 1.35 | 20.1% |
| FY2023 | ₹0Cr | ₹0Cr | 13.3% | 1.21 | 1.36 | 22.0% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 1.13 | 1.37 | 23.4% |
| FY2025 | ₹0Cr | ₹0Cr | 28.0% | 0.99 | 1.24 | 34.5% |
| FY2026 | ₹0Cr | ₹0Cr | 16.3% | 0.89 | 1.31 | 19.0% |
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.