DuPont Decomposition
Why does ACUTAAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.0% = 15.9% × 0.65 × 1.17
Latest: FY2025
Profitability
Net Margin
15.9%
14.6% →15.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.24x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.29x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.4 pp over 3 years. Driven by net margin improving (14.6% → 15.9%), asset turnover improving (0.24x → 0.65x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.6% | 0.24 | 1.29 | 4.6% |
| FY2024 | ₹0Cr | ₹0Cr | 11.4% | 0.21 | 1.63 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 15.9% | 0.65 | 1.17 | 12.0% |
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.