DuPont Decomposition
Why does ACEINTEG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-8.9% = -18.3% × 0.47 × 1.04
Latest: FY2025
Profitability
Net Margin
-18.3%
11.3% →-18.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
0.39x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.04x
1.25x →1.04x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.4 pp over 4 years. Driven by net margin declining (11.3% → -18.2%), leverage falling (1.25x → 1.04x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 0.39 | 1.25 | 5.5% |
| FY2023 | ₹0.1Cr | ₹0Cr | 6.8% | 0.34 | 1.11 | 2.5% |
| FY2024 | ₹0.1Cr | ₹0Cr | 4.5% | 0.45 | 1.07 | 2.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -18.3% | 0.47 | 1.04 | -8.9% |
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.