DuPont Decomposition
Why does TOKYOPLAST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.1% = 1.8% × 0.70 × 1.68
Latest: FY2025
Profitability
Net Margin
1.8%
-0.2% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.90x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.51x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 4 years. Driven by net margin improving (-0.2% → 1.8%), asset turnover declining (0.90x → 0.70x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.2% | 0.90 | 1.51 | -0.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.2% | 0.88 | 1.45 | -0.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.5% | 0.71 | 1.54 | 1.7% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 0.70 | 1.68 | 2.1% |
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.