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
-1.1% = -0.5% × 0.59 × 3.54
Latest: FY2025
Profitability
Net Margin
-0.5%
-7.4% →-0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.14x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.54x
5.47x →3.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 3 years. Driven by net margin improving (-7.4% → -0.5%), asset turnover improving (0.14x → 0.59x), leverage falling (5.47x → 3.54x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -7.4% | 0.14 | 5.47 | -5.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.7% | 0.14 | 5.24 | -3.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.5% | 0.59 | 3.54 | -1.1% |
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.