DuPont Decomposition
Why does UNITEDTEA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.4% = 20.9% × 0.38 × 1.06
Latest: FY2025
Profitability
Net Margin
20.9%
13.9% →20.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.40x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.06x
1.07x →1.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.5 pp over 4 years. Driven by net margin improving (13.9% → 20.9%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.9% | 0.40 | 1.07 | 5.9% |
| FY2023 | ₹0Cr | ₹0Cr | 14.8% | 0.41 | 1.06 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 19.5% | 0.38 | 1.06 | 7.9% |
| FY2025 | ₹0Cr | ₹0Cr | 20.9% | 0.38 | 1.06 | 8.4% |
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.