DuPont Decomposition
Why does EXXARO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.0% = -0.0% × 0.61 × 1.77
Latest: FY2025
Profitability
Net Margin
-0.0%
2.3% →-0.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.67x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.77x
1.71x →1.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.7 pp over 3 years. Driven by net margin declining (2.3% → -0.0%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 0.67 | 1.71 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.4% | 0.62 | 1.76 | 0.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.0% | 0.61 | 1.77 | -0.0% |
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.