DuPont Decomposition
Why does YASHO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 0.9% × 0.61 × 2.61
Latest: FY2025
Profitability
Net Margin
0.9%
8.6% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
1.26x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
2.79x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.8 pp over 4 years. Driven by net margin declining (8.6% → 0.9%), asset turnover declining (1.26x → 0.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.6% | 1.26 | 2.79 | 30.2% |
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 1.03 | 2.73 | 28.5% |
| FY2024 | ₹0Cr | ₹0Cr | 9.8% | 0.59 | 3.37 | 19.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.9% | 0.61 | 2.61 | 1.4% |
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.