DuPont Decomposition
Why does ORIENTLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.2% = -2.0% × 0.86 × 2.52
Latest: FY2025
Profitability
Net Margin
-2.0%
-2.3% →-2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.89x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.52x
2.46x →2.52x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-4%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.3% | 0.89 | 2.46 | -5.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.0% | 0.92 | 2.68 | -4.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.6% | 0.94 | 2.64 | -1.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.0% | 0.86 | 2.52 | -4.2% |
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.