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
8.2% = 4.6% × 1.22 × 1.46
Latest: FY2025
Profitability
Net Margin
4.6%
6.4% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
1.03x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.89x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.2 pp over 3 years. Driven by net margin declining (6.4% → 4.6%), asset turnover improving (1.03x → 1.22x), leverage falling (1.89x → 1.46x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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% |
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.