DuPont Decomposition
Why does TREEHOUSE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-9.0% = -280.1% × 0.03 × 1.03
Latest: FY2025
Profitability
Net Margin
-280.1%
-456.0% →-280.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.02x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.03x
1.11x →1.03x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.6 pp over 4 years. Driven by net margin improving (-456.0% → -280.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -456.0% | 0.02 | 1.11 | -10.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -476.9% | 0.04 | 1.04 | -21.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -46.4% | 0.04 | 1.02 | -1.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -280.1% | 0.03 | 1.03 | -9.0% |
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.