DuPont Decomposition
Why does RUSTOMJEE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.8% = 3.0% × 0.39 × 2.35
Latest: FY2026
Profitability
Net Margin
3.0%
11.2% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.32x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.35x
4.16x →2.35x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.2 pp over 5 years. Driven by net margin declining (11.2% → 3.0%), leverage falling (4.16x → 2.35x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.2% | 0.32 | 4.16 | 15.0% |
| FY2023 | ₹0Cr | ₹0Cr | 12.7% | 0.14 | 2.70 | 4.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 0.36 | 3.32 | 6.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 0.30 | 2.40 | 6.2% |
| FY2026 | ₹0Cr | ₹0Cr | 3.0% | 0.39 | 2.35 | 2.8% |
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.