DuPont Decomposition
Why does STARTECK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.0% = 66.0% × 0.05 × 2.57
Latest: FY2026
Profitability
Net Margin
66.0%
35.9% →66.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.11x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.57x
1.66x →2.57x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 5 years. Driven by net margin improving (35.9% → 66.0%), leverage rising (1.66x → 2.57x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 35.9% | 0.11 | 1.66 | 6.3% |
| FY2023 | ₹0Cr | ₹0Cr | 82.8% | 0.07 | 2.14 | 12.2% |
| FY2024 | ₹0Cr | ₹0Cr | 42.6% | 0.08 | 2.17 | 7.8% |
| FY2025 | ₹0Cr | ₹0Cr | 31.9% | 0.06 | 2.20 | 4.5% |
| FY2026 | ₹0Cr | ₹0Cr | 66.0% | 0.05 | 2.57 | 9.0% |
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.