DuPont Decomposition
Why does RAJESHEXPO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 0.0% × 14.40 × 1.86
Latest: FY2025
Profitability
Net Margin
0.0%
-6.8% →0.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
14.40x
0.17x →14.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
1.71x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 3 years. Driven by net margin improving (-6.8% → 0.0%), asset turnover improving (0.17x → 14.40x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -6.8% | 0.17 | 1.71 | -2.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.7% | 0.19 | 1.41 | -1.2% |
| FY2025 | ₹0Cr | ₹0Cr | 0.0% | 14.40 | 1.86 | 0.6% |
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.