DuPont Decomposition
Why does WINDMACHIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.1% = 0.1% × 0.65 × 1.79
Latest: FY2026
Profitability
Net Margin
0.1%
0.6% →0.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.63x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
2.03x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~0%. Driven by leverage falling (2.03x → 1.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 0.63 | 2.03 | 0.8% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 0.64 | 2.08 | 1.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.2% | 0.59 | 2.22 | -2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 0.37 | 1.37 | 1.0% |
| FY2026 | ₹0Cr | ₹0Cr | 0.1% | 0.65 | 1.79 | 0.1% |
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.