DuPont Decomposition
Why does AKZOINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
80.5% = 54.8% × 0.95 × 1.55
Latest: FY2026
Profitability
Net Margin
54.8%
9.3% →54.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
1.20x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
2.06x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 57.5 pp over 5 years. Driven by net margin improving (9.3% → 54.8%), asset turnover declining (1.20x → 0.95x), leverage falling (2.06x → 1.55x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 1.20 | 2.06 | 23.0% |
| FY2023 | ₹0Cr | ₹0Cr | 8.9% | 1.38 | 2.08 | 25.5% |
| FY2024 | ₹0Cr | ₹0Cr | 10.8% | 1.36 | 2.18 | 32.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.6% | 1.40 | 2.18 | 32.3% |
| FY2026 | ₹0Cr | ₹0Cr | 54.8% | 0.95 | 1.55 | 80.5% |
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.