DuPont Decomposition
Why does UYFINCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.6% = 10.6% × 0.32 × 1.05
Latest: FY2025
Profitability
Net Margin
10.6%
3.8% →10.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.28x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.05x
1.24x →1.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.2 pp over 4 years. Driven by net margin improving (3.8% → 10.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.8% | 0.28 | 1.24 | 1.3% |
| FY2023 | ₹0Cr | ₹0Cr | 14.3% | 0.18 | 1.16 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 33.2% | 0.60 | 1.03 | 20.4% |
| FY2025 | ₹0Cr | ₹0Cr | 10.6% | 0.32 | 1.05 | 3.6% |
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.