DuPont Decomposition
Why does RAJTV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 1.1% × 0.41 × 1.37
Latest: FY2026
Profitability
Net Margin
1.1%
1.6% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.41x
0.36x →0.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.33x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.6% | 0.36 | 1.33 | 0.8% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 0.42 | 1.40 | 0.8% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 0.58 | 1.27 | 0.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -16.7% | 0.66 | 1.53 | -17.0% |
| FY2026 | ₹0Cr | ₹0Cr | 1.1% | 0.41 | 1.37 | 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.