DuPont Decomposition
Why does VSTTILLERS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 9.4% × 0.78 × 1.26
Latest: FY2025
Profitability
Net Margin
9.4%
12.4% →9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.30x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.32x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 3 years. Driven by net margin declining (12.4% → 9.4%), asset turnover improving (0.30x → 0.78x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.4% | 0.30 | 1.32 | 4.9% |
| FY2024 | ₹0Cr | ₹0Cr | 12.8% | 0.23 | 1.26 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 9.4% | 0.78 | 1.26 | 9.3% |
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.