DuPont Decomposition
Why does DIGITIDE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.9% = -0.5% × 1.51 × 2.43
Latest: FY2026
Profitability
Net Margin
-0.5%
-0.5% →-0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.51x
1.51x →1.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.43x
2.43x →2.43x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹-0Cr | -0.5% | 1.51 | 2.43 | -1.9% |
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.