DuPont Decomposition
Why does ONESOURCE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.3% = -5.2% × 0.17 × 1.41
Latest: FY2026
Profitability
Net Margin
-5.2%
-2066.0% →-5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.02x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
2.56x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 100.6 pp over 4 years. Driven by net margin improving (-2066.0% → -5.2%), asset turnover improving (0.02x → 0.17x), leverage falling (2.56x → 1.41x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -2066.0% | 0.02 | 2.56 | -101.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -227.5% | 0.13 | 3.31 | -98.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.2% | 0.19 | 1.28 | -0.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -5.2% | 0.17 | 1.41 | -1.3% |
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.