DuPont Decomposition
Why does THOMASCOOK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.6% = 2.6% × 1.06 × 3.10
Latest: FY2026
Profitability
Net Margin
2.6%
-12.4% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
0.40x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.10x
2.74x →3.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.1 pp over 5 years. Driven by net margin improving (-12.4% → 2.6%), asset turnover improving (0.40x → 1.06x), leverage rising (2.74x → 3.10x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -12.4% | 0.40 | 2.74 | -13.5% |
| FY2023 | ₹0Cr | ₹0Cr | 0.1% | 0.87 | 3.32 | 0.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 1.12 | 3.12 | 12.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.1% | 1.14 | 3.15 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 2.6% | 1.06 | 3.10 | 8.6% |
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.