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
8.1% = 4.1% × 0.58 × 3.44
Latest: FY2026
Profitability
Net Margin
4.1%
0.6% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
1.41x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.44x
2.83x →3.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.9 pp over 5 years. Driven by net margin improving (0.6% → 4.1%), asset turnover declining (1.41x → 0.58x), leverage rising (2.83x → 3.44x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 1.41 | 2.83 | 2.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.8% | 0.61 | 3.05 | -8.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 0.68 | 2.65 | 4.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.7% | 0.63 | 3.35 | -18.4% |
| FY2026 | ₹0Cr | ₹0Cr | 4.1% | 0.58 | 3.44 | 8.1% |
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.