DuPont Decomposition
Why does TRIDENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.9% = 5.6% × 0.89 × 1.58
Latest: FY2026
Profitability
Net Margin
5.6%
12.7% →5.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
1.01x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.58x
1.69x →1.58x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.8 pp over 5 years. Driven by net margin declining (12.7% → 5.6%), asset turnover declining (1.01x → 0.89x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.7% | 1.01 | 1.69 | 21.7% |
| FY2023 | ₹0Cr | ₹0Cr | 7.4% | 0.88 | 1.63 | 10.5% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 0.85 | 1.75 | 8.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.98 | 1.55 | 8.0% |
| FY2026 | ₹0Cr | ₹0Cr | 5.6% | 0.89 | 1.58 | 7.9% |
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.