DuPont Decomposition
Why does WAKEFIT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.7% = -2.8% × 1.20 × 2.02
Latest: FY2025
Profitability
Net Margin
-2.8%
-18.3% →-2.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
1.01x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.02x
1.57x →2.02x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.1 pp over 3 years. Driven by net margin improving (-18.3% → -2.8%), asset turnover improving (1.01x → 1.20x), leverage rising (1.57x → 2.02x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -18.3% | 1.01 | 1.57 | -28.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.6% | 1.04 | 1.71 | -2.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.8% | 1.20 | 2.02 | -6.7% |
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.