DuPont Decomposition
Why does VENUSREM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.5% = 13.3% × 0.90 × 1.29
Latest: FY2026
Profitability
Net Margin
13.3%
6.8% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
1.03x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.32x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.2 pp over 5 years. Driven by net margin improving (6.8% → 13.3%), asset turnover declining (1.03x → 0.90x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 1.03 | 1.32 | 9.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 0.92 | 1.31 | 5.8% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 0.94 | 1.29 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 6.9% | 0.91 | 1.28 | 8.1% |
| FY2026 | ₹0Cr | ₹0Cr | 13.3% | 0.90 | 1.29 | 15.5% |
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.