DuPont Decomposition
Why does RUBFILA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 5.3% × 1.54 × 1.22
Latest: FY2025
Profitability
Net Margin
5.3%
9.4% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.54x
1.61x →1.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.25x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.0 pp over 4 years. Driven by net margin declining (9.4% → 5.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.4% | 1.61 | 1.25 | 19.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 1.46 | 1.23 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 1.42 | 1.22 | 9.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 1.54 | 1.22 | 10.0% |
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.