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
-17.0% = -16.7% × 0.66 × 1.53
Latest: FY2025
Profitability
Net Margin
-16.7%
1.6% →-16.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.36x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.33x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.8 pp over 4 years. Driven by net margin declining (1.6% → -16.7%), asset turnover improving (0.36x → 0.66x).
Historical Decomposition
Last 4 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% |
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.