DuPont Decomposition
Why does VINATIORGA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.5% = 18.1% × 0.68 × 1.17
Latest: FY2025
Profitability
Net Margin
18.1%
22.9% →18.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.68x
0.20x →0.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.15x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.3 pp over 3 years. Driven by net margin declining (22.9% → 18.1%), asset turnover improving (0.20x → 0.68x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.9% | 0.20 | 1.15 | 5.2% |
| FY2024 | ₹0Cr | ₹0Cr | 18.9% | 0.19 | 1.15 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 18.1% | 0.68 | 1.17 | 14.5% |
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.