DuPont Decomposition
Why does THYROCARE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 13.3% × 0.99 × 1.27
Latest: FY2025
Profitability
Net Margin
13.3%
9.2% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
0.21x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.18x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.4 pp over 3 years. Driven by net margin improving (9.2% → 13.3%), asset turnover improving (0.21x → 0.99x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.21 | 1.18 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 13.6% | 0.23 | 1.21 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 13.3% | 0.99 | 1.27 | 16.7% |
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.