DuPont Decomposition
Why does ZAGGLE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.0% = 6.7% × 0.99 × 1.05
Latest: FY2025
Profitability
Net Margin
6.7%
4.1% →6.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
2.36x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.05x
4.82x →1.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 39.9 pp over 3 years. Driven by net margin improving (4.1% → 6.7%), asset turnover declining (2.36x → 0.99x), leverage falling (4.82x → 1.05x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.1% | 2.36 | 4.82 | 47.0% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 1.11 | 1.21 | 7.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.7% | 0.99 | 1.05 | 7.0% |
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.