DuPont Decomposition
Why does PVRINOX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.0% = -4.9% × 0.35 × 2.31
Latest: FY2025
Profitability
Net Margin
-4.9%
-8.0% →-4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.35x
0.07x →0.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.31x
2.23x →2.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.8 pp over 3 years. Driven by net margin improving (-8.0% → -4.9%), asset turnover improving (0.07x → 0.35x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -8.0% | 0.07 | 2.23 | -1.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -10.3% | 0.07 | 2.30 | -1.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -4.9% | 0.35 | 2.31 | -4.0% |
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.