DuPont Decomposition
Why does RSYSTEMS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.2% = 9.5% × 0.93 × 1.72
Latest: FY2026
Profitability
Net Margin
9.5%
10.4% →9.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.48x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.53x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.6 pp over 4 years. Driven by asset turnover improving (0.48x → 0.93x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.4% | 0.48 | 1.53 | 7.6% |
| FY2024 | ₹0Cr | ₹0Cr | 11.0% | 0.32 | 2.15 | 7.5% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.37 | 1.95 | 6.3% |
| FY2026 | ₹0Cr | ₹0Cr | 9.5% | 0.93 | 1.72 | 15.2% |
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.