DuPont Decomposition
Why does WORTHPERI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 5.6% × 1.19 × 1.22
Latest: FY2025
Profitability
Net Margin
5.6%
6.1% →5.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
1.61x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.16x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.3 pp over 3 years. Driven by asset turnover declining (1.61x → 1.19x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 1.61 | 1.16 | 11.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 1.15 | 1.19 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.6% | 1.19 | 1.22 | 8.2% |
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.