DuPont Decomposition
Why does FAZE3Q earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.4% = 3.6% × 1.13 × 1.81
Latest: FY2026
Profitability
Net Margin
3.6%
10.7% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
0.98x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
1.75x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.9 pp over 5 years. Driven by net margin declining (10.7% → 3.6%), asset turnover improving (0.98x → 1.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.7% | 0.98 | 1.75 | 18.4% |
| FY2023 | ₹0Cr | ₹0Cr | 11.0% | 0.97 | 1.63 | 17.4% |
| FY2024 | ₹0Cr | ₹0Cr | 8.7% | 0.91 | 1.56 | 12.2% |
| FY2025 | ₹0Cr | ₹0Cr | 5.9% | 1.01 | 1.63 | 9.7% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 1.13 | 1.81 | 7.4% |
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.