DuPont Decomposition
Why does RUSHIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.6% = 5.5% × 0.71 × 1.95
Latest: FY2025
Profitability
Net Margin
5.5%
3.7% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.70x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.95x
3.09x →1.95x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~8%. Driven by net margin improving (3.7% → 5.5%), leverage falling (3.09x → 1.95x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.7% | 0.70 | 3.09 | 8.0% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 0.83 | 2.75 | 21.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 0.76 | 2.03 | 7.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 0.71 | 1.95 | 7.6% |
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.