DuPont Decomposition
Why does WIPRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.8% = 14.7% × 0.69 × 1.55
Latest: FY2025
Profitability
Net Margin
14.7%
13.3% →14.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.20x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.51x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.8 pp over 3 years. Driven by net margin improving (13.3% → 14.7%), asset turnover improving (0.20x → 0.69x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.3% | 0.20 | 1.51 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 12.9% | 0.19 | 1.54 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 14.7% | 0.69 | 1.55 | 15.8% |
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.