DuPont Decomposition
Why does UNIPARTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.2% = 13.5% × 0.93 × 1.44
Latest: FY2026
Profitability
Net Margin
13.5%
14.3% →13.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
1.14x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.50x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.4 pp over 5 years. Driven by asset turnover declining (1.14x → 0.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.3% | 1.14 | 1.50 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 15.6% | 1.24 | 1.27 | 24.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.4% | 0.97 | 1.30 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 9.1% | 0.82 | 1.32 | 9.9% |
| FY2026 | ₹0Cr | ₹0Cr | 13.5% | 0.93 | 1.44 | 18.2% |
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.