DuPont Decomposition
Why does TASTYBITE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.3% = 6.4% × 1.15 × 1.39
Latest: FY2026
Profitability
Net Margin
6.4%
2.8% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.15x
0.86x →1.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.98x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 5 years. Driven by net margin improving (2.8% → 6.4%), asset turnover improving (0.86x → 1.15x), leverage falling (1.98x → 1.39x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 0.86 | 1.98 | 4.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 1.03 | 1.89 | 12.4% |
| FY2024 | ₹0Cr | ₹0Cr | 7.7% | 1.21 | 1.56 | 14.5% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 1.22 | 1.46 | 8.2% |
| FY2026 | ₹0Cr | ₹0Cr | 6.4% | 1.15 | 1.39 | 10.3% |
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.