DuPont Decomposition
Why does FCSSOFT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 13.2% × 0.06 × 1.08
Latest: FY2025
Profitability
Net Margin
13.2%
-0.2% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.07x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.09x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin improving (-0.2% → 13.2%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.2% | 0.07 | 1.09 | -0.0% |
| FY2023 | ₹0.1Cr | ₹0Cr | 1.6% | 0.02 | 1.09 | 0.0% |
| FY2024 | ₹0.1Cr | ₹-0Cr | -11.7% | 0.02 | 1.06 | -0.3% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.06 | 1.08 | 0.8% |
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.