DuPont Decomposition
Why does OMAXE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-29.9% = -9.0% × 0.12 × 28.77
Latest: FY2024
Profitability
Net Margin
-9.0%
-14.3% →-9.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.05x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
28.77x
15.10x →28.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 18.3 pp over 2 years. Driven by net margin improving (-14.3% → -9.0%), leverage rising (15.10x → 28.77x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -14.3% | 0.05 | 15.10 | -11.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -9.0% | 0.12 | 28.77 | -29.9% |
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.