DuPont Decomposition
Why does DIGISPICE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-18.1% = -8.7% × 0.63 × 3.29
Latest: FY2025
Profitability
Net Margin
-8.7%
-20.0% →-8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.63x
0.22x →0.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.29x
1.21x →3.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.8 pp over 3 years. Driven by net margin improving (-20.0% → -8.7%), asset turnover improving (0.22x → 0.63x), leverage rising (1.21x → 3.29x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -20.0% | 0.22 | 1.21 | -5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 0.68 | 2.65 | 4.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.7% | 0.63 | 3.29 | -18.1% |
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.