DuPont Decomposition
Why does TRANSWORLD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-11.1% = -13.7% × 0.48 × 1.69
Latest: FY2026
Profitability
Net Margin
-13.7%
39.4% →-13.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.59x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
1.45x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 44.7 pp over 5 years. Driven by net margin declining (39.4% → -13.7%), asset turnover declining (0.59x → 0.48x), leverage rising (1.45x → 1.69x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 39.4% | 0.59 | 1.45 | 33.5% |
| FY2023 | ₹0Cr | ₹0Cr | 40.8% | 0.36 | 1.66 | 24.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -18.1% | 0.23 | 1.63 | -6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.54 | 1.50 | 3.5% |
| FY2026 | ₹0Cr | ₹-0Cr | -13.7% | 0.48 | 1.69 | -11.1% |
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.