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
11.4% = 3.2% × 1.12 × 3.18
Latest: FY2025
Profitability
Net Margin
3.2%
0.1% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
0.87x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.18x
3.32x →3.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.0 pp over 3 years. Driven by net margin improving (0.1% → 3.2%), asset turnover improving (0.87x → 1.12x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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 | 3.2% | 1.12 | 3.18 | 11.4% |
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.