DuPont Decomposition
Why does FIRSTCRY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.9% = -1.6% × 0.95 × 1.87
Latest: FY2026
Profitability
Net Margin
-1.6%
-2.6% →-1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.56x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
1.83x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-3%. Driven by net margin improving (-2.6% → -1.6%), asset turnover improving (0.56x → 0.95x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.6% | 0.56 | 1.83 | -2.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -8.4% | 0.74 | 2.06 | -12.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.3% | 0.84 | 2.37 | -8.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.5% | 0.86 | 1.87 | -4.0% |
| FY2026 | ₹0Cr | ₹-0Cr | -1.6% | 0.95 | 1.87 | -2.9% |
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.