DuPont Decomposition
Why does UNITEDPOLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.2% = 2.9% × 2.45 × 2.53
Latest: FY2025
Profitability
Net Margin
2.9%
1.4% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.45x
3.12x →2.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.53x
3.81x →2.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.1 pp over 4 years. Driven by net margin improving (1.4% → 2.9%), asset turnover declining (3.12x → 2.45x), leverage falling (3.81x → 2.53x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 3.12 | 3.81 | 17.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 3.30 | 3.11 | 8.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.7% | 3.74 | 3.05 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 2.45 | 2.53 | 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.