DuPont Decomposition
Why does WAAREEENER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.7% = 13.0% × 0.73 × 2.08
Latest: FY2025
Profitability
Net Margin
13.0%
2.7% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
1.27x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
5.23x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 4 years. Driven by net margin improving (2.7% → 13.0%), asset turnover declining (1.27x → 0.73x), leverage falling (5.23x → 2.08x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.7% | 1.27 | 5.23 | 17.7% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 0.89 | 4.04 | 26.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.9% | 1.01 | 2.77 | 30.3% |
| FY2025 | ₹0Cr | ₹0Cr | 13.0% | 0.73 | 2.08 | 19.7% |
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.