DuPont Decomposition
Why does PROZONER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.9% = -21.2% × 0.12 × 1.89
Latest: FY2025
Profitability
Net Margin
-21.2%
14.6% →-21.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.11x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
3.10x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.8 pp over 3 years. Driven by net margin declining (14.6% → -21.2%), leverage falling (3.10x → 1.89x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.6% | 0.11 | 3.10 | 4.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 0.12 | 3.05 | 0.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -21.2% | 0.12 | 1.89 | -4.9% |
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.