DuPont Decomposition
Why does AAATECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.7% = 10.1% × 0.62 × 1.05
Latest: FY2026
Profitability
Net Margin
10.1%
16.2% →10.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.56x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.05x
1.12x →1.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.5 pp over 5 years. Driven by net margin declining (16.2% → 10.1%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.2% | 0.56 | 1.12 | 10.2% |
| FY2023 | ₹0Cr | ₹0Cr | 12.5% | 0.83 | 1.09 | 11.3% |
| FY2024 | ₹0Cr | ₹0Cr | 13.5% | 0.81 | 1.05 | 11.5% |
| FY2025 | ₹0Cr | ₹0Cr | 13.8% | 0.78 | 1.06 | 11.4% |
| FY2026 | ₹0Cr | ₹0Cr | 10.1% | 0.62 | 1.05 | 6.7% |
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.