DuPont Decomposition
Why does CINEVISTA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-62.6% = -273.9% × 0.08 × 2.88
Latest: FY2025
Profitability
Net Margin
-273.9%
-1616.6% →-273.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.01x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.88x
1.58x →2.88x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 48.6 pp over 4 years. Driven by net margin improving (-1616.6% → -273.9%), leverage rising (1.58x → 2.88x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1616.6% | 0.01 | 1.58 | -14.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -3498.1% | 0.00 | 1.95 | -31.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -1702.6% | 0.00 | 2.17 | -9.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -273.9% | 0.08 | 2.88 | -62.6% |
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.