DuPont Decomposition
Why does DBREALTY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.5% = -11.1% × 0.13 × 1.72
Latest: FY2025
Profitability
Net Margin
-11.1%
-71.2% →-11.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.01x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
3.95x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-3%. Driven by net margin improving (-71.2% → -11.1%), asset turnover improving (0.01x → 0.13x), leverage falling (3.95x → 1.72x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -71.2% | 0.01 | 3.95 | -1.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -9.2% | 0.02 | 1.83 | -0.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -11.1% | 0.13 | 1.72 | -2.5% |
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.