DuPont Decomposition
Why does OLAELEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-44.3% = -56.9% × 0.36 × 2.15
Latest: FY2025
Profitability
Net Margin
-56.9%
-213.1% →-56.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.07x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.15x
1.47x →2.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 22.8 pp over 4 years. Driven by net margin improving (-213.1% → -56.9%), asset turnover improving (0.07x → 0.36x), leverage rising (1.47x → 2.15x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -213.1% | 0.07 | 1.47 | -21.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -56.6% | 0.47 | 2.37 | -62.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -33.0% | 0.62 | 3.83 | -78.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -56.9% | 0.36 | 2.15 | -44.3% |
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.