DuPont Decomposition
Why does TIMEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
67.8% = 9.4% × 2.36 × 3.04
Latest: FY2026
Profitability
Net Margin
9.4%
1.2% →9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.36x
2.03x →2.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.04x
8.38x →3.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 47.1 pp over 5 years. Driven by net margin improving (1.2% → 9.4%), asset turnover improving (2.03x → 2.36x), leverage falling (8.38x → 3.04x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.2% | 2.03 | 8.38 | 20.7% |
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 1.97 | 3.21 | 76.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.0% | 2.08 | 2.47 | 25.6% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 2.13 | 3.00 | 37.4% |
| FY2026 | ₹0Cr | ₹0Cr | 9.4% | 2.36 | 3.04 | 67.8% |
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.