DuPont Decomposition
Why does WELENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 9.7% × 0.49 × 2.41
Latest: FY2026
Profitability
Net Margin
9.7%
9.3% →9.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.23x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.41x
3.29x →2.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 5 years. Driven by asset turnover improving (0.23x → 0.49x), leverage falling (3.29x → 2.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 0.23 | 3.29 | 7.0% |
| FY2023 | ₹0Cr | ₹0Cr | 26.8% | 0.53 | 2.17 | 30.7% |
| FY2024 | ₹0Cr | ₹0Cr | 10.4% | 0.57 | 2.13 | 12.7% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.61 | 2.38 | 12.7% |
| FY2026 | ₹0Cr | ₹0Cr | 9.7% | 0.49 | 2.41 | 11.5% |
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.