DuPont Decomposition
Why does VENKEYS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 3.7% × 1.61 × 1.45
Latest: FY2026
Profitability
Net Margin
3.7%
3.9% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.61x
2.19x →1.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.56x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.5 pp over 5 years. Driven by asset turnover declining (2.19x → 1.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.9% | 2.19 | 1.56 | 13.2% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 2.01 | 1.55 | 5.4% |
| FY2024 | ₹0Cr | ₹0Cr | 2.2% | 1.72 | 1.53 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 1.60 | 1.40 | 7.9% |
| FY2026 | ₹0Cr | ₹0Cr | 3.7% | 1.61 | 1.45 | 8.7% |
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.