DuPont Decomposition
Why does WENDT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.7% = 6.2% × 0.77 × 1.20
Latest: FY2026
Profitability
Net Margin
6.2%
19.3% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.91x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.21x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.5 pp over 4 years. Driven by net margin declining (19.3% → 6.2%), asset turnover declining (0.91x → 0.77x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 19.3% | 0.91 | 1.21 | 21.2% |
| FY2024 | ₹0Cr | ₹0Cr | 18.2% | 0.88 | 1.21 | 19.3% |
| FY2025 | ₹0Cr | ₹0Cr | 17.1% | 0.77 | 1.23 | 16.2% |
| FY2026 | ₹0Cr | ₹0Cr | 6.2% | 0.77 | 1.20 | 5.7% |
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.