DuPont Decomposition
Why does ABMINTLLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.1% = -1.7% × 2.17 × 2.74
Latest: FY2025
Profitability
Net Margin
-1.7%
-7.8% →-1.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.17x
2.43x →2.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.74x
1.93x →2.74x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 26.7 pp over 3 years. Driven by net margin improving (-7.8% → -1.7%), asset turnover declining (2.43x → 2.17x), leverage rising (1.93x → 2.74x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -7.8% | 2.43 | 1.93 | -36.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.6% | 2.39 | 2.64 | -23.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.7% | 2.17 | 2.74 | -10.1% |
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.