DuPont Decomposition
Why does VIKRAMSOLR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 4.1% × 1.21 × 2.28
Latest: FY2025
Profitability
Net Margin
4.1%
-3.6% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
0.77x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.28x
6.37x →2.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 29.2 pp over 4 years. Driven by net margin improving (-3.6% → 4.1%), asset turnover improving (0.77x → 1.21x), leverage falling (6.37x → 2.28x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -3.6% | 0.77 | 6.37 | -17.9% |
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 0.84 | 6.78 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 0.97 | 5.80 | 17.9% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 1.21 | 2.28 | 11.3% |
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.