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
-66.0% = -296.5% × 0.08 × 2.81
Latest: FY2024
Profitability
Net Margin
-296.5%
-2.0% →-296.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.15x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.81x
2.26x →2.81x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 65.3 pp over 3 years. Driven by net margin declining (-2.0% → -296.5%), leverage rising (2.26x → 2.81x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.0% | 0.15 | 2.26 | -0.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -17.1% | 0.30 | 2.20 | -11.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -296.5% | 0.08 | 2.81 | -66.0% |
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.