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
14.9% = 14.3% × 0.65 × 1.60
Latest: FY2026
Profitability
Net Margin
14.3%
15.4% →14.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.73x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.64x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.7 pp over 5 years. Driven by net margin declining (15.4% → 14.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.4% | 0.73 | 1.64 | 18.6% |
| FY2023 | ₹0Cr | ₹0Cr | 12.5% | 0.77 | 1.51 | 14.5% |
| FY2024 | ₹0Cr | ₹0Cr | 12.3% | 0.78 | 1.54 | 14.7% |
| FY2025 | ₹0Cr | ₹0Cr | 14.7% | 0.69 | 1.55 | 15.9% |
| FY2026 | ₹0Cr | ₹0Cr | 14.3% | 0.65 | 1.60 | 14.9% |
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.