DuPont Decomposition
Why does RVTH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.0% = 11.4% × 0.74 × 1.89
Latest: FY2025
Profitability
Net Margin
11.4%
11.2% →11.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.80x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
2.00x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.0 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.2% | 0.80 | 2.00 | 18.0% |
| FY2023 | ₹0Cr | ₹0Cr | 12.2% | 0.68 | 2.12 | 17.7% |
| FY2024 | ₹0Cr | ₹0Cr | 14.7% | 0.89 | 2.24 | 29.1% |
| FY2025 | ₹0Cr | ₹0Cr | 11.4% | 0.74 | 1.89 | 16.0% |
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.