DuPont Decomposition
Why does RSSOFTWARE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-99.5% = -115.8% × 0.45 × 1.93
Latest: FY2026
Profitability
Net Margin
-115.8%
-55.0% →-115.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.45x
0.58x →0.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.93x
1.23x →1.93x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 60.5 pp over 5 years. Driven by net margin declining (-55.0% → -115.8%), asset turnover declining (0.58x → 0.45x), leverage rising (1.23x → 1.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -55.0% | 0.58 | 1.23 | -39.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -27.0% | 0.70 | 1.43 | -26.9% |
| FY2024 | ₹0Cr | ₹0Cr | 30.4% | 0.87 | 1.42 | 37.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.2% | 0.79 | 1.30 | 15.6% |
| FY2026 | ₹0Cr | ₹-0Cr | -115.8% | 0.45 | 1.93 | -99.5% |
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.