DuPont Decomposition
Why does THELEELA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.3% = 3.7% × 0.16 × 2.29
Latest: FY2025
Profitability
Net Margin
3.7%
3.7% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.16x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.29x
2.29x →2.29x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 0.16 | 2.29 | 1.3% |
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.