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
1.9% = 1.0% × 0.76 × 2.63
Latest: FY2025
Profitability
Net Margin
1.0%
4.9% →1.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.24x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.63x
2.40x →2.63x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~2%. Driven by net margin declining (4.9% → 1.0%), asset turnover improving (0.24x → 0.76x), leverage rising (2.40x → 2.63x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 0.24 | 2.40 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 0.22 | 2.46 | 2.0% |
| FY2025 | ₹0Cr | ₹0Cr | 1.0% | 0.76 | 2.63 | 1.9% |
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.