DuPont Decomposition
Why does ZENITHEXPO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.1% = 2.4% × 0.71 × 1.23
Latest: FY2025
Profitability
Net Margin
2.4%
1.1% →2.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.87x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.30x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~2%. Driven by net margin improving (1.1% → 2.4%), asset turnover declining (0.87x → 0.71x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 0.87 | 1.30 | 1.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 0.60 | 1.25 | 2.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.4% | 0.85 | 1.19 | 0.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.4% | 0.71 | 1.23 | 2.1% |
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.