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
7.9% = 3.7% × 1.54 × 1.40
Latest: FY2025
Profitability
Net Margin
3.7%
2.4% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.54x
0.52x →1.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.55x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.0 pp over 3 years. Driven by net margin improving (2.4% → 3.7%), asset turnover improving (0.52x → 1.54x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 0.52 | 1.55 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 0.43 | 1.53 | 2.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.54 | 1.40 | 7.9% |
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.