DuPont Decomposition
Why does RSWM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.8% = 1.1% × 1.26 × 2.66
Latest: FY2026
Profitability
Net Margin
1.1%
6.6% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.26x
1.46x →1.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.66x
2.49x →2.66x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.0 pp over 5 years. Driven by net margin declining (6.6% → 1.1%), asset turnover declining (1.46x → 1.26x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.6% | 1.46 | 2.49 | 23.8% |
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 1.29 | 2.19 | 9.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.5% | 1.07 | 2.85 | -1.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.8% | 1.34 | 2.78 | -3.1% |
| FY2026 | ₹0Cr | ₹0Cr | 1.1% | 1.26 | 2.66 | 3.8% |
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.