DuPont Decomposition
Why does ONMOBILE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.4% = -7.0% × 0.66 × 1.40
Latest: FY2025
Profitability
Net Margin
-7.0%
6.3% →-7.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.57x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.40x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.4 pp over 4 years. Driven by net margin declining (6.2% → -7.0%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 0.57 | 1.40 | 5.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 0.58 | 1.39 | 1.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 0.58 | 1.36 | 2.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -7.0% | 0.66 | 1.40 | -6.4% |
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.