DuPont Decomposition
Why does VEEDOL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.5% = 8.8% × 1.54 × 1.36
Latest: FY2026
Profitability
Net Margin
8.8%
8.0% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.54x
1.48x →1.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.44x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.0% | 1.48 | 1.44 | 17.1% |
| FY2023 | ₹0Cr | ₹0Cr | 6.2% | 1.69 | 1.44 | 15.0% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 1.68 | 1.39 | 17.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 1.57 | 1.37 | 18.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.8% | 1.54 | 1.36 | 18.5% |
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.