DuPont Decomposition
Why does ASIANPAINT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.2% = 12.2% × 1.03 × 1.62
Latest: FY2026
Profitability
Net Margin
12.2%
10.5% →12.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.03x
1.26x →1.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.66x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.7 pp over 5 years. Driven by net margin improving (10.5% → 12.2%), asset turnover declining (1.26x → 1.03x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.5% | 1.26 | 1.66 | 21.9% |
| FY2023 | ₹0Cr | ₹0Cr | 11.9% | 1.33 | 1.61 | 25.7% |
| FY2024 | ₹0Cr | ₹0Cr | 15.4% | 1.18 | 1.60 | 29.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 1.11 | 1.57 | 18.9% |
| FY2026 | ₹0Cr | ₹0Cr | 12.2% | 1.03 | 1.62 | 20.2% |
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.