DuPont Decomposition
Why does WAAREEINDO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
135.6% = 16.9% × 1.35 × 5.96
Latest: FY2025
Profitability
Net Margin
16.9%
16.9% →16.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.35x
1.35x →1.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.96x
5.96x →5.96x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 16.9% | 1.35 | 5.96 | 135.6% |
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.