DuPont Decomposition
Why does IMAGICAA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.2% = 20.9% × 0.20 × 1.51
Latest: FY2025
Profitability
Net Margin
20.9%
149.7% →20.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.20x
0.22x →0.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
4.71x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 145.7 pp over 3 years. Driven by net margin declining (149.7% → 20.9%), leverage falling (4.71x → 1.51x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 149.7% | 0.22 | 4.71 | 151.9% |
| FY2024 | ₹0Cr | ₹0Cr | 223.8% | 0.20 | 1.61 | 73.2% |
| FY2025 | ₹0Cr | ₹0Cr | 20.9% | 0.20 | 1.51 | 6.2% |
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.