DuPont Decomposition
Why does RUBYMILLS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.7% = 20.3% × 0.20 × 1.63
Latest: FY2025
Profitability
Net Margin
20.3%
14.4% →20.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.20x
0.08x →0.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.72x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.7 pp over 3 years. Driven by net margin improving (14.4% → 20.3%), asset turnover improving (0.08x → 0.20x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.4% | 0.08 | 1.72 | 2.0% |
| FY2024 | ₹0Cr | ₹0Cr | 22.0% | 0.08 | 1.46 | 2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 20.3% | 0.20 | 1.63 | 6.7% |
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.