DuPont Decomposition
Why does VAIBHAVGBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 4.6% × 1.65 × 1.51
Latest: FY2025
Profitability
Net Margin
4.6%
3.4% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.65x
0.39x →1.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.49x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.4 pp over 3 years. Driven by net margin improving (3.4% → 4.6%), asset turnover improving (0.39x → 1.65x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.39 | 1.49 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 16.9% | 0.15 | 1.31 | 3.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 1.65 | 1.51 | 11.4% |
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.