DuPont Decomposition
Why does VENTIVE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 17.3% × 0.23 × 1.94
Latest: FY2026
Profitability
Net Margin
17.3%
-13.5% →17.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.23x
0.15x →0.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.94x
2.92x →1.94x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.4 pp over 5 years. Driven by net margin improving (-13.5% → 17.3%), leverage falling (2.92x → 1.94x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -13.5% | 0.15 | 2.92 | -5.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.9% | 0.20 | 2.97 | -0.5% |
| FY2024 | ₹0Cr | ₹0Cr | 34.8% | 0.05 | 2.93 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 0.16 | 2.05 | 2.5% |
| FY2026 | ₹0Cr | ₹0Cr | 17.3% | 0.23 | 1.94 | 7.7% |
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.