DuPont Decomposition
Why does TOUCHWOOD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.8% = 7.5% × 1.39 × 1.21
Latest: FY2025
Profitability
Net Margin
7.5%
7.9% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.39x
1.44x →1.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.18x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~13%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.9% | 1.44 | 1.18 | 13.5% |
| FY2023 | ₹0Cr | ₹0Cr | 6.7% | 1.08 | 1.30 | 9.4% |
| FY2024 | ₹0Cr | ₹0Cr | 9.8% | 0.77 | 1.19 | 9.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 1.39 | 1.21 | 12.8% |
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.