DuPont Decomposition
Why does WEWORK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.0% = 3.0% × 0.34 × 23.80
Latest: FY2026
Profitability
Net Margin
3.0%
3.0% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.34x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
23.80x
23.80x →23.80x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 3.0% | 0.34 | 23.80 | 25.0% |
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.