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
27.9% = 19.8% × 1.10 × 1.28
Latest: FY2026
Profitability
Net Margin
19.8%
29.9% →19.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.10x
0.97x →1.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.15x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.6 pp over 5 years. Driven by net margin declining (29.9% → 19.8%), asset turnover improving (0.97x → 1.10x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 29.9% | 0.97 | 1.15 | 33.5% |
| FY2023 | ₹0Cr | ₹0Cr | 12.5% | 0.82 | 1.18 | 12.1% |
| FY2024 | ₹0Cr | ₹0Cr | 12.5% | 0.88 | 1.22 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 13.4% | 0.98 | 1.27 | 16.7% |
| FY2026 | ₹0Cr | ₹0Cr | 19.8% | 1.10 | 1.28 | 27.9% |
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.