DuPont Decomposition
Why does TVSSRICHAK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.0% = 2.0% × 1.20 × 2.56
Latest: FY2026
Profitability
Net Margin
2.0%
1.7% →2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
1.07x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.56x
2.43x →2.56x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 5 years. Driven by asset turnover improving (1.07x → 1.20x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 1.07 | 2.43 | 4.5% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 1.21 | 2.37 | 7.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 1.08 | 2.43 | 9.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 1.09 | 2.52 | 1.7% |
| FY2026 | ₹0Cr | ₹0Cr | 2.0% | 1.20 | 2.56 | 6.0% |
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.