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
6.5% = 12.2% × 0.29 × 1.80
Latest: FY2026
Profitability
Net Margin
12.2%
19.5% →12.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.16x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
1.83x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by net margin declining (19.5% → 12.2%), asset turnover improving (0.16x → 0.29x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 19.5% | 0.16 | 1.83 | 5.9% |
| FY2023 | ₹0Cr | ₹0Cr | 15.6% | 0.23 | 1.72 | 6.3% |
| FY2024 | ₹0Cr | ₹0Cr | 22.6% | 0.22 | 1.46 | 7.4% |
| FY2025 | ₹0Cr | ₹0Cr | 20.3% | 0.20 | 1.63 | 6.7% |
| FY2026 | ₹0Cr | ₹0Cr | 12.2% | 0.29 | 1.80 | 6.5% |
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.