DuPont Decomposition
Why does TOLINS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.9% = 13.2% × 0.79 × 1.14
Latest: FY2025
Profitability
Net Margin
13.2%
0.6% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
1.14x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
9.16x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.1 pp over 4 years. Driven by net margin improving (0.6% → 13.2%), asset turnover declining (1.14x → 0.79x), leverage falling (9.16x → 1.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 1.14 | 9.16 | 5.8% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 1.41 | 4.32 | 25.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.4% | 1.03 | 2.20 | 25.9% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.79 | 1.14 | 11.9% |
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.