DuPont Decomposition
Why does ADROITINFO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.9% = 2.2% × 0.33 × 1.29
Latest: FY2025
Profitability
Net Margin
2.2%
16.9% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.33x
0.66x →0.33x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.72x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 18.1 pp over 3 years. Driven by net margin declining (16.9% → 2.2%), asset turnover declining (0.66x → 0.33x), leverage falling (1.72x → 1.29x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.9% | 0.66 | 1.72 | 19.1% |
| FY2024 | ₹0Cr | ₹0Cr | 12.1% | 0.52 | 1.36 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 0.33 | 1.29 | 0.9% |
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.