DuPont Decomposition
Why does TVTODAY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.6% = 1.8% × 0.72 × 1.27
Latest: FY2026
Profitability
Net Margin
1.8%
19.8% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.65x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.22x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.1 pp over 5 years. Driven by net margin declining (19.8% → 1.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 19.8% | 0.65 | 1.22 | 15.7% |
| FY2023 | ₹0Cr | ₹0Cr | 10.3% | 0.80 | 1.29 | 10.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.1% | 0.82 | 1.30 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 0.88 | 1.27 | 8.4% |
| FY2026 | ₹0Cr | ₹0Cr | 1.8% | 0.72 | 1.27 | 1.6% |
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.