DuPont Decomposition
Why does ABLBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 2.0% × 0.96 × 6.17
Latest: FY2026
Profitability
Net Margin
2.0%
2.0% →2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.96x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.17x
6.17x →6.17x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 2.0% | 0.96 | 6.17 | 12.1% |
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.