DuPont Decomposition
Why does CREATIVEYE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-3.6% = -27.5% × 0.09 × 1.38
Latest: FY2025
Profitability
Net Margin
-27.5%
-19.0% →-27.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.07x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.32x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.9 pp over 3 years. Driven by net margin declining (-19.0% → -27.5%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -19.0% | 0.07 | 1.32 | -1.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -548.7% | 0.02 | 1.42 | -12.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -27.5% | 0.09 | 1.38 | -3.6% |
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.