DuPont Decomposition
Why does TIGERLOGS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.5% = 5.0% × 2.74 × 1.41
Latest: FY2025
Profitability
Net Margin
5.0%
5.5% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.74x
5.07x →2.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.63x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 25.7 pp over 4 years. Driven by asset turnover declining (5.07x → 2.74x), leverage falling (1.63x → 1.41x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 5.07 | 1.63 | 45.2% |
| FY2023 | ₹0Cr | ₹0Cr | 5.4% | 3.63 | 1.22 | 23.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 1.67 | 1.30 | 11.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 2.74 | 1.41 | 19.5% |
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.