DuPont Decomposition
Why does ADOR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 7.2% × 1.37 × 1.50
Latest: FY2026
Profitability
Net Margin
7.2%
6.8% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.37x
1.67x →1.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
1.39x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 5 years. Driven by asset turnover declining (1.67x → 1.37x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 1.67 | 1.39 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 1.71 | 1.40 | 18.3% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 1.57 | 1.44 | 18.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 1.62 | 1.37 | 11.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.2% | 1.37 | 1.50 | 14.8% |
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.