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
7.8% = 4.3% × 0.91 × 2.01
Latest: FY2025
Profitability
Net Margin
4.3%
10.1% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.97x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.01x
2.25x →2.01x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.4 pp over 4 years. Driven by net margin declining (10.1% → 4.3%), leverage falling (2.25x → 2.01x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.1% | 0.97 | 2.25 | 22.2% |
| FY2023 | ₹0Cr | ₹0Cr | 32.1% | 1.25 | 1.67 | 67.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.6% | 1.02 | 1.76 | 13.6% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.91 | 2.01 | 7.8% |
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.