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
30.6% = 26.8% × 0.72 × 1.58
Latest: FY2026
Profitability
Net Margin
26.8%
1.3% →26.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.37x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.58x
2.58x →1.58x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 29.3 pp over 5 years. Driven by net margin improving (1.3% → 26.8%), asset turnover improving (0.37x → 0.72x), leverage falling (2.58x → 1.58x).
Historical Decomposition
Last 5 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% |
| FY2026 | ₹0Cr | ₹0Cr | 26.8% | 0.72 | 1.58 | 30.6% |
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.