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
16.1% = 7.2% × 1.45 × 1.55
Latest: FY2026
Profitability
Net Margin
7.2%
8.7% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.45x
1.62x →1.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.50x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.0 pp over 5 years. Driven by net margin declining (8.7% → 7.2%), asset turnover declining (1.62x → 1.45x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.7% | 1.62 | 1.50 | 21.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 1.50 | 1.49 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.60 | 1.50 | 10.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.66 | 1.51 | 11.4% |
| FY2026 | ₹0Cr | ₹0Cr | 7.2% | 1.45 | 1.55 | 16.1% |
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.