DuPont Decomposition
Why does ZEEMEDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-54.1% = -19.2% × 0.71 × 3.99
Latest: FY2025
Profitability
Net Margin
-19.2%
-13.6% →-19.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.89x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.99x
2.13x →3.99x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.3 pp over 4 years. Driven by net margin declining (-13.6% → -19.2%), asset turnover declining (0.89x → 0.71x), leverage rising (2.13x → 3.99x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -13.6% | 0.89 | 2.13 | -25.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -9.6% | 0.83 | 2.25 | -17.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -15.4% | 0.66 | 3.35 | -34.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -19.2% | 0.71 | 3.99 | -54.1% |
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.