DuPont Decomposition
Why does USHAMART earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 12.0% × 0.90 × 1.36
Latest: FY2025
Profitability
Net Margin
12.0%
11.1% →12.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.96x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.62x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.4 pp over 4 years. Driven by leverage falling (1.62x → 1.36x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.1% | 0.96 | 1.62 | 17.2% |
| FY2023 | ₹0Cr | ₹0Cr | 11.0% | 1.03 | 1.52 | 17.2% |
| FY2024 | ₹0Cr | ₹0Cr | 13.5% | 0.94 | 1.40 | 17.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.0% | 0.90 | 1.36 | 14.8% |
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.