DuPont Decomposition
Why does ACC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.9% = 11.6% × 0.81 × 1.37
Latest: FY2025
Profitability
Net Margin
11.6%
11.8% →11.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
0.75x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.47x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~13%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 0.75 | 1.47 | 13.0% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.87 | 1.45 | 4.7% |
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 0.23 | 1.45 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 17.5% | 0.23 | 1.43 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 11.6% | 0.81 | 1.37 | 12.9% |
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.