DuPont Decomposition
Why does DANGEE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-3.3% = -1.9% × 0.73 × 2.33
Latest: FY2025
Profitability
Net Margin
-1.9%
-5.8% →-1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.43x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.33x
2.70x →2.33x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 4 years. Driven by net margin improving (-5.8% → -1.9%), asset turnover improving (0.43x → 0.73x), leverage falling (2.70x → 2.33x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -5.8% | 0.43 | 2.70 | -6.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.5% | 0.56 | 2.65 | -3.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.5% | 0.63 | 2.44 | -5.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.9% | 0.73 | 2.33 | -3.3% |
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.