DuPont Decomposition

Why does EROSMEDIA earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

-111.5% = -26.4% × 0.35 × 12.22

Latest: FY2023

Profitability

Net Margin

-26.4%

-26.4% →-26.4%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.35x

0.35x →0.35x

Revenue per ₹ of assets

Leverage

Equity Multiplier

12.22x

12.22x →12.22x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2023₹0Cr₹-0Cr-26.4%0.3512.22-111.5%

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)

See DCF fair value for EROSMEDIA

Combine financial quality with intrinsic value.

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.