DuPont Decomposition
Why does V2RETAIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.0% = 5.3% × 1.27 × 2.68
Latest: FY2026
Profitability
Net Margin
5.3%
-1.9% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.27x
0.79x →1.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.68x
3.07x →2.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.5 pp over 5 years. Driven by net margin improving (-1.9% → 5.3%), asset turnover improving (0.79x → 1.27x), leverage falling (3.07x → 2.68x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.9% | 0.79 | 3.07 | -4.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.5% | 1.05 | 3.21 | -5.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 1.13 | 3.74 | 10.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 1.18 | 4.62 | 20.8% |
| FY2026 | ₹0Cr | ₹0Cr | 5.3% | 1.27 | 2.68 | 18.0% |
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.