DuPont Decomposition
Why does ZODIACLOTH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-18.1% = -22.1% × 0.48 × 1.70
Latest: FY2025
Profitability
Net Margin
-22.1%
-13.4% →-22.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.34x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.47x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.5 pp over 4 years. Driven by net margin declining (-13.4% → -22.1%), asset turnover improving (0.34x → 0.48x), leverage rising (1.47x → 1.70x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -13.4% | 0.34 | 1.47 | -6.6% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 0.44 | 1.36 | 5.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -25.8% | 0.37 | 1.55 | -14.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -22.1% | 0.48 | 1.70 | -18.1% |
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.