DuPont Decomposition
Why does AARTISURF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 2.2% × 1.36 × 2.05
Latest: FY2025
Profitability
Net Margin
2.2%
1.0% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.36x
1.42x →1.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
2.96x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.2 pp over 4 years. Driven by net margin improving (1.0% → 2.2%), leverage falling (2.96x → 2.05x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.0% | 1.42 | 2.96 | 4.0% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 1.48 | 2.40 | 7.6% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 1.39 | 1.94 | 9.8% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 1.36 | 2.05 | 6.3% |
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.