DuPont Decomposition
Why does TIMETECHNO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.4% = 7.1% × 1.24 × 1.52
Latest: FY2025
Profitability
Net Margin
7.1%
5.2% →7.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.24x
1.01x →1.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
1.74x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 4 years. Driven by net margin improving (5.2% → 7.1%), asset turnover improving (1.01x → 1.24x), leverage falling (1.74x → 1.52x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.2% | 1.01 | 1.74 | 9.1% |
| FY2023 | ₹0Cr | ₹0Cr | 5.1% | 1.12 | 1.69 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 1.21 | 1.61 | 12.2% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 1.24 | 1.52 | 13.4% |
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.