DuPont Decomposition
Why does QUADFUTURE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.6% = -13.4% × 0.37 × 1.35
Latest: FY2025
Profitability
Net Margin
-13.4%
1.9% →-13.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.92x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
7.23x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.0 pp over 4 years. Driven by net margin declining (1.9% → -13.4%), asset turnover declining (0.92x → 0.37x), leverage falling (7.23x → 1.35x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 0.92 | 7.23 | 12.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.1% | 1.28 | 4.04 | 47.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.8% | 1.03 | 3.13 | 25.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -13.4% | 0.37 | 1.35 | -6.6% |
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.