DuPont Decomposition
Why does TINNARUBR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.6% = 9.7% × 1.03 × 1.76
Latest: FY2026
Profitability
Net Margin
9.7%
7.4% →9.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.03x
1.21x →1.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
2.44x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.2 pp over 5 years. Driven by net margin improving (7.4% → 9.7%), asset turnover declining (1.21x → 1.03x), leverage falling (2.44x → 1.76x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.4% | 1.21 | 2.44 | 21.8% |
| FY2023 | ₹0Cr | ₹0Cr | 7.4% | 1.52 | 2.01 | 22.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 1.35 | 2.10 | 31.5% |
| FY2025 | ₹0Cr | ₹0Cr | 9.6% | 1.31 | 2.16 | 27.1% |
| FY2026 | ₹0Cr | ₹0Cr | 9.7% | 1.03 | 1.76 | 17.6% |
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.