DuPont Decomposition
Why does MEESHO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-30.9% = -10.8% × 1.60 × 1.80
Latest: FY2026
Profitability
Net Margin
-10.8%
-29.2% →-10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.60x
1.49x →1.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
1.56x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 36.7 pp over 4 years. Driven by net margin improving (-29.2% → -10.8%), asset turnover improving (1.49x → 1.60x), leverage rising (1.56x → 1.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -29.2% | 1.49 | 1.56 | -67.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.3% | 1.83 | 1.87 | -14.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -42.0% | 1.30 | 5.00 | -272.7% |
| FY2026 | ₹0Cr | ₹-0Cr | -10.8% | 1.60 | 1.80 | -30.9% |
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.