DuPont Decomposition
Why does PEARLPOLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-15.3% = -23.3% × 0.54 × 1.22
Latest: FY2025
Profitability
Net Margin
-23.3%
156.1% →-23.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.54x
0.25x →0.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.22x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 62.7 pp over 4 years. Driven by net margin declining (156.1% → -23.3%), asset turnover improving (0.25x → 0.54x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 156.1% | 0.25 | 1.22 | 47.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -47.7% | 0.38 | 1.19 | -21.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 0.36 | 1.17 | 1.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -23.3% | 0.54 | 1.22 | -15.3% |
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.