DuPont Decomposition
Why does PENINLAND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-215.6% = -107.3% × 0.22 × 9.32
Latest: FY2026
Profitability
Net Margin
-107.3%
10.0% →-107.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.81x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.32x
69.37x →9.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 773.5 pp over 4 years. Driven by net margin declining (10.0% → -107.3%), asset turnover declining (0.81x → 0.22x), leverage falling (69.37x → 9.32x). 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 |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.0% | 0.81 | 69.37 | 558.0% |
| FY2024 | ₹0Cr | ₹0Cr | 23.1% | 0.56 | 4.07 | 52.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -14.0% | 0.27 | 4.17 | -15.7% |
| FY2026 | ₹0Cr | ₹-0Cr | -107.3% | 0.22 | 9.32 | -215.6% |
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.