DuPont Decomposition
Why does ABBOTINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
32.5% = 22.4% × 1.07 × 1.36
Latest: FY2026
Profitability
Net Margin
22.4%
16.3% →22.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
1.16x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.50x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.2 pp over 5 years. Driven by net margin improving (16.3% → 22.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.3% | 1.16 | 1.50 | 28.3% |
| FY2023 | ₹0Cr | ₹0Cr | 17.8% | 1.17 | 1.43 | 29.8% |
| FY2024 | ₹0Cr | ₹0Cr | 20.5% | 1.13 | 1.40 | 32.5% |
| FY2025 | ₹0Cr | ₹0Cr | 22.1% | 1.08 | 1.40 | 33.4% |
| FY2026 | ₹0Cr | ₹0Cr | 22.4% | 1.07 | 1.36 | 32.5% |
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.