DuPont Decomposition
Why does ADFFOODS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 12.4% × 0.89 × 1.28
Latest: FY2025
Profitability
Net Margin
12.4%
13.1% →12.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.23x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.25x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.2 pp over 3 years. Driven by asset turnover improving (0.23x → 0.89x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.1% | 0.23 | 1.25 | 3.8% |
| FY2024 | ₹0Cr | ₹0Cr | 16.3% | 0.28 | 1.26 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 12.4% | 0.89 | 1.28 | 14.1% |
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.