DuPont Decomposition
Why does PALASHSECU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.1% = -26.1% × 0.07 × 1.14
Latest: FY2025
Profitability
Net Margin
-26.1%
-15.9% →-26.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.09x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.10x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-2%. Driven by net margin declining (-15.9% → -26.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -15.9% | 0.09 | 1.10 | -1.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -29.4% | 0.12 | 1.09 | -3.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -23.5% | 0.07 | 1.14 | -2.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -26.1% | 0.07 | 1.14 | -2.1% |
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.