DuPont Decomposition
Why does PANACEABIO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.0% = -1.7% × 0.38 × 1.55
Latest: FY2025
Profitability
Net Margin
-1.7%
163.6% →-1.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.37x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
2.01x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 124.0 pp over 4 years. Driven by net margin declining (163.6% → -1.7%), leverage falling (2.01x → 1.55x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 163.6% | 0.37 | 2.01 | 123.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -7.3% | 0.36 | 1.51 | -3.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.2% | 0.44 | 1.47 | -0.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.7% | 0.38 | 1.55 | -1.0% |
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.