DuPont Decomposition
Why does TRAVELFOOD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
34.5% = 21.5% × 0.89 × 1.81
Latest: FY2025
Profitability
Net Margin
21.5%
1.3% →21.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.37x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
2.58x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 33.2 pp over 4 years. Driven by net margin improving (1.3% → 21.5%), asset turnover improving (0.37x → 0.89x), leverage falling (2.58x → 1.81x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.3% | 0.37 | 2.58 | 1.2% |
| FY2023 | ₹0Cr | ₹0Cr | 22.9% | 0.80 | 2.03 | 37.2% |
| FY2024 | ₹0Cr | ₹0Cr | 20.6% | 0.82 | 1.94 | 32.9% |
| FY2025 | ₹0Cr | ₹0Cr | 21.5% | 0.89 | 1.81 | 34.5% |
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.