DuPont Decomposition
Why does TBOTEK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.8% = 9.1% × 0.29 × 6.00
Latest: FY2026
Profitability
Net Margin
9.1%
7.7% →9.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.34x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.00x
5.48x →6.00x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 5 years. Driven by net margin improving (7.7% → 9.1%), leverage rising (5.48x → 6.00x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.7% | 0.34 | 5.48 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 0.38 | 7.52 | 42.4% |
| FY2024 | ₹0Cr | ₹0Cr | 15.8% | 0.26 | 8.92 | 37.1% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.28 | 5.20 | 19.2% |
| FY2026 | ₹0Cr | ₹0Cr | 9.1% | 0.29 | 6.00 | 15.8% |
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.