DuPont Decomposition
Why does RADIOCITY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.8% = -14.4% × 0.35 × 1.34
Latest: FY2025
Profitability
Net Margin
-14.4%
-3.4% →-14.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.35x
0.26x →0.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.08x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.9 pp over 4 years. Driven by net margin declining (-3.4% → -14.4%), leverage rising (1.08x → 1.34x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -3.4% | 0.26 | 1.08 | -0.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 0.30 | 1.25 | 0.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 0.34 | 1.28 | 1.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -14.4% | 0.35 | 1.34 | -6.8% |
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.