DuPont Decomposition
Why does ZEELEARN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.5% = 3.4% × 0.25 × 7.70
Latest: FY2025
Profitability
Net Margin
3.4%
-1.1% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.17x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
7.70x
2.40x →7.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.9 pp over 4 years. Driven by net margin improving (-1.1% → 3.4%), leverage rising (2.40x → 7.70x). 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 | -1.1% | 0.17 | 2.40 | -0.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -136.8% | 0.32 | 7.27 | -315.0% |
| FY2024 | ₹0Cr | ₹0Cr | 45.7% | 0.33 | 5.93 | 89.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 0.25 | 7.70 | 6.5% |
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.