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
9.7% = 5.9% × 1.01 × 1.63
Latest: FY2025
Profitability
Net Margin
5.9%
10.7% →5.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.98x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.75x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.7 pp over 4 years. Driven by net margin declining (10.7% → 5.9%).
Historical Decomposition
Last 4 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% |
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.