DuPont Decomposition
Why does YUKEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.9% = 3.1% × 0.73 × 1.70
Latest: FY2026
Profitability
Net Margin
3.1%
4.2% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.68x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
2.53x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.3 pp over 5 years. Driven by net margin declining (4.2% → 3.1%), leverage falling (2.53x → 1.70x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.2% | 0.68 | 2.53 | 7.2% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 0.84 | 2.21 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 4.5% | 0.88 | 1.72 | 6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.4% | 0.87 | 1.74 | 8.2% |
| FY2026 | ₹0Cr | ₹0Cr | 3.1% | 0.73 | 1.70 | 3.9% |
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.