DuPont Decomposition
Why does ACUTAAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 15.9% × 0.65 × 1.18
Latest: FY2025
Profitability
Net Margin
15.9%
13.8% →15.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.79x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.26x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.7 pp over 4 years. Driven by net margin improving (13.8% → 15.9%), asset turnover declining (0.79x → 0.65x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.8% | 0.79 | 1.26 | 13.8% |
| FY2023 | ₹0Cr | ₹0Cr | 13.6% | 0.80 | 1.29 | 14.0% |
| FY2024 | ₹0Cr | ₹0Cr | 6.0% | 0.65 | 1.63 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 15.9% | 0.65 | 1.18 | 12.1% |
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.