DuPont Decomposition
Why does ADVAIT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.6% = 7.2% × 1.07 × 2.40
Latest: FY2026
Profitability
Net Margin
7.2%
6.8% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
0.96x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.40x
2.22x →2.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 5 years. Driven by asset turnover improving (0.96x → 1.07x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 0.96 | 2.22 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.88 | 2.53 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 10.6% | 1.04 | 2.71 | 29.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 0.81 | 2.43 | 15.3% |
| FY2026 | ₹0Cr | ₹0Cr | 7.2% | 1.07 | 2.40 | 18.6% |
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.