DuPont Decomposition
Why does DGCONTENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
89.0% = 5.5% × 1.95 × 8.28
Latest: FY2025
Profitability
Net Margin
5.5%
6.5% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.95x
1.87x →1.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.28x
31.06x →8.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 287.6 pp over 3 years. Driven by leverage falling (31.06x → 8.28x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.5% | 1.87 | 31.06 | 376.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 1.73 | 207.87 | 499.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 1.95 | 8.28 | 89.0% |
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.