DuPont Decomposition
Why does TFL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-16.3% = -40.2% × 0.13 × 3.22
Latest: FY2025
Profitability
Net Margin
-40.2%
-17.9% →-40.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.12x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.22x
7.23x →3.22x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-16%. Driven by net margin declining (-17.9% → -40.2%), leverage falling (7.23x → 3.22x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -17.9% | 0.12 | 7.23 | -16.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -95.7% | 0.09 | 3.63 | -30.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 0.11 | 3.28 | 1.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -40.2% | 0.13 | 3.22 | -16.3% |
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.