DuPont Decomposition
Why does TRIVENI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 4.3% × 0.91 × 1.98
Latest: FY2025
Profitability
Net Margin
4.3%
10.5% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.41x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.98x
1.67x →1.98x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~8%. Driven by net margin declining (10.5% → 4.3%), asset turnover improving (0.41x → 0.91x), leverage rising (1.67x → 1.98x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.5% | 0.41 | 1.67 | 7.1% |
| FY2024 | ₹0Cr | ₹0Cr | 10.4% | 0.30 | 1.76 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.91 | 1.98 | 7.7% |
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.