DuPont Decomposition
Why does TAINWALCHM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 60.5% × 0.10 × 1.09
Latest: FY2026
Profitability
Net Margin
60.5%
4.8% →60.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.08x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.01x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.8 pp over 5 years. Driven by net margin improving (4.8% → 60.5%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 0.08 | 1.01 | 0.4% |
| FY2023 | ₹0Cr | ₹0Cr | 25.6% | 0.13 | 1.01 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 26.7% | 0.15 | 1.05 | 4.1% |
| FY2025 | ₹0Cr | ₹0Cr | 30.0% | 0.10 | 1.09 | 3.2% |
| FY2026 | ₹0Cr | ₹0Cr | 60.5% | 0.10 | 1.09 | 6.3% |
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.