DuPont Decomposition
Why does TIPSMUSIC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
83.4% = 57.7% × 1.04 × 1.39
Latest: FY2026
Profitability
Net Margin
57.7%
41.0% →57.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.97x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.41x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 27.2 pp over 4 years. Driven by net margin improving (41.0% → 57.7%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 41.0% | 0.97 | 1.41 | 56.2% |
| FY2024 | ₹0Cr | ₹0Cr | 52.6% | 0.71 | 1.89 | 70.8% |
| FY2025 | ₹0Cr | ₹0Cr | 53.6% | 0.92 | 1.62 | 79.5% |
| FY2026 | ₹0Cr | ₹0Cr | 57.7% | 1.04 | 1.39 | 83.4% |
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.