DuPont Decomposition
Why does VOLTAMP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.0% = 14.2% × 1.07 × 1.13
Latest: FY2026
Profitability
Net Margin
14.2%
11.8% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
1.06x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.13x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.9 pp over 5 years. Driven by net margin improving (11.8% → 14.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 1.06 | 1.13 | 14.1% |
| FY2023 | ₹0Cr | ₹0Cr | 14.5% | 1.13 | 1.10 | 18.1% |
| FY2024 | ₹0Cr | ₹0Cr | 19.1% | 1.06 | 1.12 | 22.7% |
| FY2025 | ₹0Cr | ₹0Cr | 16.8% | 1.09 | 1.12 | 20.5% |
| FY2026 | ₹0Cr | ₹0Cr | 14.2% | 1.07 | 1.13 | 17.0% |
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.