DuPont Decomposition
Why does ONELIFECAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-14.8% = -71.3% × 0.04 × 4.95
Latest: FY2025
Profitability
Net Margin
-71.3%
-11.4% →-71.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.03x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.95x
1.27x →4.95x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.4 pp over 4 years. Driven by net margin declining (-11.4% → -71.3%), leverage rising (1.27x → 4.95x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -11.4% | 0.03 | 1.27 | -0.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -77.5% | 0.03 | 1.51 | -3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 0.09 | 3.25 | 0.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -71.3% | 0.04 | 4.95 | -14.8% |
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.