DuPont Decomposition
Why does WEIZMANIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.9% = -3.1% × 1.29 × 1.49
Latest: FY2025
Profitability
Net Margin
-3.1%
3.5% →-3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.29x
0.91x →1.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.65x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.1 pp over 4 years. Driven by net margin declining (3.5% → -3.1%), asset turnover improving (0.91x → 1.29x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.5% | 0.91 | 1.65 | 5.2% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 1.33 | 1.57 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 1.26 | 1.34 | 12.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -3.1% | 1.29 | 1.49 | -5.9% |
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.