DuPont Decomposition
Why does LGBFORGE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.7% = -1.4% × 1.39 × 3.42
Latest: FY2025
Profitability
Net Margin
-1.4%
-8.0% →-1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.39x
1.36x →1.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.42x
2.82x →3.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 24.1 pp over 3 years. Driven by net margin improving (-8.0% → -1.4%), leverage rising (2.82x → 3.42x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -8.0% | 1.36 | 2.82 | -30.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -11.0% | 1.13 | 3.92 | -48.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.4% | 1.39 | 3.42 | -6.7% |
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.