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
19.2% = 14.2% × 0.26 × 5.20
Latest: FY2025
Profitability
Net Margin
14.2%
7.7% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.34x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.20x
5.48x →5.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.7 pp over 4 years. Driven by net margin improving (7.7% → 14.2%), leverage falling (5.48x → 5.20x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 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 | 7.59 | 42.8% |
| FY2024 | ₹0Cr | ₹0Cr | 15.8% | 1.37 | 2.97 | 64.1% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.26 | 5.20 | 19.2% |
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.