DuPont Decomposition
Why does WANBURY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
51.5% = 5.1% × 1.43 × 6.98
Latest: FY2025
Profitability
Net Margin
5.1%
9.7% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
1.67x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.98x
12.28x →6.98x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 148.8 pp over 2 years. Driven by net margin declining (9.7% → 5.1%), asset turnover declining (1.67x → 1.43x), leverage falling (12.28x → 6.98x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹0Cr | 9.7% | 1.67 | 12.28 | 200.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.1% | 1.43 | 6.98 | 51.5% |
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.