DuPont Decomposition
Why does VINNY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.1% = 0.7% × 1.00 × 1.50
Latest: FY2026
Profitability
Net Margin
0.7%
-4.1% →0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
1.91x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
2.25x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.8 pp over 5 years. Driven by net margin improving (-4.1% → 0.7%), asset turnover declining (1.91x → 1.00x), leverage falling (2.25x → 1.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -4.1% | 1.91 | 2.25 | -17.7% |
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 1.67 | 2.26 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 1.69 | 2.11 | 11.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.2% | 1.15 | 1.29 | 6.3% |
| FY2026 | ₹0Cr | ₹0Cr | 0.7% | 1.00 | 1.50 | 1.1% |
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.