DuPont Decomposition
Why does AARTIPHARM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 9.6% × 0.52 × 1.64
Latest: FY2026
Profitability
Net Margin
9.6%
10.3% →9.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.52x
0.58x →0.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.47x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~8%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.3% | 0.58 | 1.47 | 8.8% |
| FY2023 | ₹0Cr | ₹0Cr | 10.0% | 0.86 | 1.44 | 12.4% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.70 | 1.47 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 0.73 | 1.46 | 13.7% |
| FY2026 | ₹0Cr | ₹0Cr | 9.6% | 0.52 | 1.64 | 8.2% |
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.