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
10.4% = 8.3% × 0.94 × 1.34
Latest: FY2026
Profitability
Net Margin
8.3%
3.7% →8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.94x
0.87x →0.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.45x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 5 years. Driven by net margin improving (3.7% → 8.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.87 | 1.45 | 4.7% |
| FY2023 | ₹0Cr | ₹0Cr | 4.0% | 1.08 | 1.45 | 6.3% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.84 | 1.43 | 14.3% |
| FY2025 | ₹0Cr | ₹0Cr | 11.5% | 0.82 | 1.37 | 12.9% |
| FY2026 | ₹0Cr | ₹0Cr | 8.3% | 0.94 | 1.34 | 10.4% |
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.