DuPont Decomposition
Why does WAAREERTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
51.3% = 14.4% × 1.40 × 2.54
Latest: FY2026
Profitability
Net Margin
14.4%
5.3% →14.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.40x
0.96x →1.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.54x
5.62x →2.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.4 pp over 5 years. Driven by net margin improving (5.3% → 14.4%), asset turnover improving (0.96x → 1.40x), leverage falling (5.62x → 2.54x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.3% | 0.96 | 5.62 | 28.8% |
| FY2023 | ₹0Cr | ₹0Cr | 15.8% | 1.24 | 3.33 | 65.2% |
| FY2024 | ₹0Cr | ₹0Cr | 16.6% | 1.23 | 2.90 | 59.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 1.43 | 2.46 | 50.4% |
| FY2026 | ₹0Cr | ₹0Cr | 14.4% | 1.40 | 2.54 | 51.3% |
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.