DuPont Decomposition
Why does RPTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.7% = 1.8% × 2.97 × 2.63
Latest: FY2026
Profitability
Net Margin
1.8%
1.9% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.97x
3.49x →2.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.63x
4.64x →2.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.9 pp over 5 years. Driven by asset turnover declining (3.49x → 2.97x), leverage falling (4.64x → 2.63x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 3.49 | 4.64 | 31.7% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 3.38 | 4.00 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 2.91 | 2.46 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 1.5% | 3.23 | 2.45 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 1.8% | 2.97 | 2.63 | 13.7% |
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.