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
-83.8% = -25.3% × 0.12 × 28.77
Latest: FY2024
Profitability
Net Margin
-25.3%
-31.6% →-25.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.04x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
28.77x
9.57x →28.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 71.0 pp over 3 years. Driven by net margin improving (-31.6% → -25.3%), leverage rising (9.57x → 28.77x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -31.6% | 0.04 | 9.57 | -12.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -47.6% | 0.05 | 15.10 | -38.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -25.3% | 0.12 | 28.77 | -83.8% |
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.