DuPont Decomposition
Why does VAKRANGEE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 4.4% × 0.82 × 1.46
Latest: FY2026
Profitability
Net Margin
4.4%
0.0% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.58x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
2.61x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 5 years. Driven by net margin improving (0.0% → 4.4%), asset turnover improving (0.58x → 0.82x), leverage falling (2.61x → 1.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.0% | 0.58 | 2.61 | 0.0% |
| FY2023 | ₹0Cr | ₹0Cr | 0.5% | 0.66 | 2.41 | 0.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.71 | 1.85 | 2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 0.83 | 1.52 | 3.2% |
| FY2026 | ₹0Cr | ₹0Cr | 4.4% | 0.82 | 1.46 | 5.3% |
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.