DuPont Decomposition
Why does ABSLAMC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.1% = 52.9% × 0.42 × 1.09
Latest: FY2026
Profitability
Net Margin
52.9%
48.6% →52.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.44x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.11x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~24%. Driven by net margin improving (48.6% → 52.9%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 48.6% | 0.44 | 1.11 | 23.7% |
| FY2024 | ₹0Cr | ₹0Cr | 57.7% | 0.39 | 1.11 | 24.6% |
| FY2025 | ₹0Cr | ₹0Cr | 55.2% | 0.41 | 1.10 | 25.0% |
| FY2026 | ₹0Cr | ₹0Cr | 52.9% | 0.42 | 1.09 | 24.1% |
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.