DuPont Decomposition
Why does TEMBO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.1% = 7.3% × 1.22 × 2.72
Latest: FY2025
Profitability
Net Margin
7.3%
1.8% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
1.87x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.72x
3.66x →2.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.5 pp over 4 years. Driven by net margin improving (1.8% → 7.3%), asset turnover declining (1.87x → 1.22x), leverage falling (3.66x → 2.72x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 1.87 | 3.66 | 12.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 2.27 | 2.75 | 14.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 2.64 | 2.46 | 21.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 1.22 | 2.72 | 24.1% |
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.