DuPont Decomposition
Why does WAKEFIT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 12.7% × 0.85 × 1.55
Latest: FY2026
Profitability
Net Margin
12.7%
-18.3% →12.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
1.01x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.57x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 45.5 pp over 4 years. Driven by net margin improving (-18.3% → 12.7%), asset turnover declining (1.01x → 0.85x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -18.3% | 1.01 | 1.57 | -28.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.6% | 1.04 | 1.71 | -2.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.8% | 1.21 | 2.02 | -6.7% |
| FY2026 | ₹0Cr | ₹0Cr | 12.7% | 0.85 | 1.55 | 16.7% |
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.