DuPont Decomposition
Why does TEAMLEASE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.4% = 1.2% × 4.21 × 2.68
Latest: FY2026
Profitability
Net Margin
1.2%
0.6% →1.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.21x
4.21x →4.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.68x
2.22x →2.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.9 pp over 5 years. Driven by leverage rising (2.22x → 2.68x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 4.21 | 2.22 | 5.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 4.45 | 2.19 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 4.81 | 2.43 | 14.1% |
| FY2025 | ₹0Cr | ₹0Cr | 1.0% | 5.20 | 2.36 | 12.0% |
| FY2026 | ₹0Cr | ₹0Cr | 1.2% | 4.21 | 2.68 | 13.4% |
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.