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
6.3% = 4.3% × 1.14 × 1.29
Latest: FY2025
Profitability
Net Margin
4.3%
-4.1% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.14x
1.91x →1.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
2.25x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 24.0 pp over 4 years. Driven by net margin improving (-4.1% → 4.3%), asset turnover declining (1.91x → 1.14x), leverage falling (2.25x → 1.29x).
Historical Decomposition
Last 4 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 | 4.3% | 1.14 | 1.29 | 6.3% |
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.