DuPont Decomposition
Why does VINEETLAB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-137.8% = -26.9% × 0.79 × 6.45
Latest: FY2025
Profitability
Net Margin
-26.9%
3.5% →-26.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
1.43x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.45x
4.01x →6.45x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 157.8 pp over 4 years. Driven by net margin declining (3.5% → -26.9%), asset turnover declining (1.43x → 0.79x), leverage rising (4.01x → 6.45x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.5% | 1.43 | 4.01 | 20.0% |
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 1.83 | 3.44 | 3.7% |
| FY2024 | ₹0Cr | ₹0Cr | 0.7% | 1.29 | 3.37 | 3.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -26.9% | 0.79 | 6.45 | -137.8% |
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.