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
16.2% = 17.1% × 0.77 × 1.23
Latest: FY2025
Profitability
Net Margin
17.1%
21.7% →17.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.26x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.21x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.4 pp over 3 years. Driven by net margin declining (21.7% → 17.1%), asset turnover improving (0.26x → 0.77x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 21.7% | 0.26 | 1.21 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 19.1% | 0.27 | 1.21 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 17.1% | 0.77 | 1.23 | 16.2% |
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.