DuPont Decomposition
Why does WONDERLA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.5% = 15.8% × 0.27 × 1.08
Latest: FY2026
Profitability
Net Margin
15.8%
-7.4% →15.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
0.14x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.13x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 5 years. Driven by net margin improving (-7.4% → 15.8%), asset turnover improving (0.14x → 0.27x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -7.4% | 0.14 | 1.13 | -1.2% |
| FY2023 | ₹0Cr | ₹0Cr | 34.9% | 0.40 | 1.13 | 15.7% |
| FY2024 | ₹0Cr | ₹0Cr | 32.9% | 0.39 | 1.13 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 23.8% | 0.25 | 1.08 | 6.3% |
| FY2026 | ₹0Cr | ₹0Cr | 15.8% | 0.27 | 1.08 | 4.5% |
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.