DuPont Decomposition
Why does OILCOUNTUB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-13.8% = -25.9% × 0.32 × 1.65
Latest: FY2025
Profitability
Net Margin
-25.9%
60054.5% →-25.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.00x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
1.99x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 55.7 pp over 3 years. Driven by net margin declining (60054.5% → -25.9%), asset turnover improving (0.00x → 0.32x), leverage falling (1.99x → 1.65x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 60054.5% | 0.00 | 1.99 | 41.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -386.2% | 0.04 | 2.19 | -36.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -25.9% | 0.32 | 1.65 | -13.8% |
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.