DuPont Decomposition
Why does UFLEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.9% = 2.1% × 0.68 × 2.73
Latest: FY2026
Profitability
Net Margin
2.1%
8.5% →2.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.68x
0.90x →0.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.73x
2.16x →2.73x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.5 pp over 5 years. Driven by net margin declining (8.5% → 2.1%), asset turnover declining (0.90x → 0.68x), leverage rising (2.16x → 2.73x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.5% | 0.90 | 2.16 | 16.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 0.88 | 2.19 | 6.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.2% | 0.76 | 2.40 | -9.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.0% | 0.76 | 2.63 | 1.9% |
| FY2026 | ₹0Cr | ₹0Cr | 2.1% | 0.68 | 2.73 | 3.9% |
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.