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
8.4% = 7.9% × 0.83 × 1.27
Latest: FY2025
Profitability
Net Margin
7.9%
10.3% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.80x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.29x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 3 years. Driven by net margin declining (10.3% → 7.9%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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 | 7.9% | 0.83 | 1.27 | 8.4% |
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.