DuPont Decomposition
Why does WEWIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.8% = 2.1% × 1.51 × 1.83
Latest: FY2025
Profitability
Net Margin
2.1%
5.1% →2.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.51x
1.51x →1.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.83x
1.31x →1.83x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.3 pp over 4 years. Driven by net margin declining (5.1% → 2.1%), leverage rising (1.31x → 1.83x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.1% | 1.51 | 1.31 | 10.1% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 1.27 | 1.62 | 10.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 1.25 | 1.94 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.1% | 1.51 | 1.83 | 5.8% |
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.