DuPont Decomposition
Why does ZYDUSWELL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 12.9% × 0.42 × 1.14
Latest: FY2025
Profitability
Net Margin
12.9%
20.4% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.12x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.14x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.3 pp over 3 years. Driven by net margin declining (20.4% → 12.9%), asset turnover improving (0.12x → 0.42x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.4% | 0.12 | 1.14 | 2.8% |
| FY2024 | ₹0Cr | ₹0Cr | 19.2% | 0.13 | 1.15 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 0.42 | 1.14 | 6.1% |
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.