DuPont Decomposition
Why does TRUALT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.1% = 8.0% × 0.60 × 3.94
Latest: FY2025
Profitability
Net Margin
8.0%
5.4% →8.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.60x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.94x
10.62x →3.94x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.2 pp over 4 years. Driven by net margin improving (5.4% → 8.0%), leverage falling (10.62x → 3.94x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.4% | 0.60 | 10.62 | 34.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 0.63 | 7.72 | 20.4% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 0.51 | 9.14 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 8.0% | 0.60 | 3.94 | 19.1% |
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.