DuPont Decomposition
Why does ASHIMASYN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.4% = 107.6% × 0.17 × 1.68
Latest: FY2024
Profitability
Net Margin
107.6%
8.6% →107.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.66x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.40x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.5 pp over 3 years. Driven by net margin improving (8.6% → 107.6%), asset turnover declining (0.66x → 0.17x), leverage rising (1.40x → 1.68x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.6% | 0.66 | 1.40 | 7.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -3.2% | 0.65 | 1.45 | -3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 107.6% | 0.17 | 1.68 | 30.4% |
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.