DuPont Decomposition
Why does WEBELSOLAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
55.6% = 26.9% × 1.12 × 1.85
Latest: FY2025
Profitability
Net Margin
26.9%
-4872.7% →26.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
0.00x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.40x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 58.4 pp over 3 years. Driven by net margin improving (-4872.7% → 26.9%), asset turnover improving (0.00x → 1.12x), leverage rising (1.40x → 1.85x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0.1Cr | -4872.7% | 0.00 | 1.40 | -2.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -235.5% | 0.07 | 3.27 | -54.4% |
| FY2025 | ₹0Cr | ₹0Cr | 26.9% | 1.12 | 1.85 | 55.6% |
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.