DuPont Decomposition
Why does ELGIRUBCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.4% = -1.1% × 0.73 × 2.90
Latest: FY2025
Profitability
Net Margin
-1.1%
-4.2% →-1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.77x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.90x
2.92x →2.90x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.1 pp over 4 years. Driven by net margin improving (-4.2% → -1.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -4.2% | 0.77 | 2.92 | -9.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 0.74 | 2.90 | 3.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 0.68 | 2.98 | 6.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.1% | 0.73 | 2.90 | -2.4% |
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.