DuPont Decomposition
Why does NETWORK18 earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-35.1% = -24.8% × 0.80 × 1.77
Latest: FY2025
Profitability
Net Margin
-24.8%
-2.4% →-24.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.11x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.77x
20.72x →1.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 29.9 pp over 3 years. Driven by net margin declining (-2.4% → -24.8%), asset turnover improving (0.11x → 0.80x), leverage falling (20.72x → 1.77x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -2.4% | 0.11 | 20.72 | -5.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -8.6% | 0.06 | 6.03 | -3.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -24.8% | 0.80 | 1.77 | -35.1% |
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.