DuPont Decomposition
Why does TRACXN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-15.0% = -9.4% × 0.86 × 1.87
Latest: FY2026
Profitability
Net Margin
-9.4%
-7.6% →-9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
1.17x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.62x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.5 pp over 5 years. Driven by net margin declining (-7.6% → -9.4%), asset turnover declining (1.17x → 0.86x), leverage falling (2.62x → 1.87x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -7.6% | 1.17 | 2.62 | -23.5% |
| FY2023 | ₹0Cr | ₹0Cr | 42.4% | 0.80 | 1.63 | 55.4% |
| FY2024 | ₹0Cr | ₹0Cr | 7.8% | 0.73 | 1.60 | 9.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -11.3% | 0.76 | 1.68 | -14.5% |
| FY2026 | ₹0Cr | ₹-0Cr | -9.4% | 0.86 | 1.87 | -15.0% |
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.