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
11.8% = 1.0% × 5.17 × 2.32
Latest: FY2025
Profitability
Net Margin
1.0%
1.4% →1.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
5.17x
4.45x →5.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.32x
2.19x →2.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.0 pp over 3 years. Driven by asset turnover improving (4.45x → 5.17x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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% | 5.17 | 2.32 | 11.8% |
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.