DuPont Decomposition
Why does RPSGVENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.5% = -1.2% × 0.59 × 7.60
Latest: FY2026
Profitability
Net Margin
-1.2%
2.0% →-1.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.52x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
7.60x
5.07x →7.60x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.7 pp over 5 years. Driven by net margin declining (2.0% → -1.2%), leverage rising (5.07x → 7.60x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.0% | 0.52 | 5.07 | 5.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.1% | 0.54 | 5.47 | -6.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.5% | 0.57 | 5.24 | -1.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.5% | 0.59 | 6.09 | -1.8% |
| FY2026 | ₹0Cr | ₹-0Cr | -1.2% | 0.59 | 7.60 | -5.5% |
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.