DuPont Decomposition
Why does LOYALTEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-19.1% = -8.0% × 0.76 × 3.13
Latest: FY2025
Profitability
Net Margin
-8.0%
5.8% →-8.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
1.31x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.13x
3.55x →3.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 45.8 pp over 4 years. Driven by net margin declining (5.8% → -8.0%), asset turnover declining (1.31x → 0.76x), leverage falling (3.55x → 3.13x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.8% | 1.31 | 3.55 | 26.8% |
| FY2023 | ₹0Cr | ₹0Cr | 0.2% | 1.03 | 3.59 | 0.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.4% | 0.80 | 3.48 | -12.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.0% | 0.76 | 3.13 | -19.1% |
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.