DuPont Decomposition
Why does UMAEXPORTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.8% = 0.2% × 3.75 × 2.37
Latest: FY2025
Profitability
Net Margin
0.2%
1.9% →0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.75x
4.97x →3.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.37x
2.73x →2.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 23.8 pp over 4 years. Driven by net margin declining (1.9% → 0.2%), asset turnover declining (4.97x → 3.75x), leverage falling (2.73x → 2.37x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 4.97 | 2.73 | 25.6% |
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 4.53 | 1.83 | 15.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.7% | 4.17 | 1.94 | 5.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.2% | 3.75 | 2.37 | 1.8% |
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.