Return on Equity (ROE) is widely used as a primary indicator of corporate financial performance; however, its aggregated nature often obscures the underlying sources of profitability. A high ROE may result either from genuine operational efficiency or from excessive financial leverage, leading to different risk and sustainability implications. This study aims to decompose ROE in order to identify the relative contributions of operational efficiency and financial leverage using the DuPont analysis framework. Employing a descriptive–analytical approach, this research integrates the three-step and five-step DuPont models to examine profitability structures based on secondary financial statement data. The analysis reveals that firms with ROE driven primarily by profit margins and asset turnover exhibit more sustainable performance compared to firms relying heavily on leverage amplification. The five-step DuPont model further demonstrates that interest and tax burdens play a critical role in distorting apparent profitability. These findings highlight the importance of structural profitability analysis rather than reliance on single financial ratios. This study contributes theoretically by reinforcing DuPont analysis as a comprehensive diagnostic tool and practically by providing managers and investors with an early warning mechanism to distinguish between efficiency-based and risk-based profitability.