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
8.0% = 5.6% × 0.92 × 1.55
Latest: FY2025
Profitability
Net Margin
5.6%
8.3% →5.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.23x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.63x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.9 pp over 3 years. Driven by net margin declining (8.3% → 5.6%), asset turnover improving (0.23x → 0.92x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.23 | 1.63 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.5% | 0.22 | 1.75 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.6% | 0.92 | 1.55 | 8.0% |
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.