DuPont Decomposition
Why does ADVENTHTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.0% = 16.3% × 0.10 × 4.42
Latest: FY2026
Profitability
Net Margin
16.3%
16.3% →16.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.10x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.42x
4.42x →4.42x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 16.3% | 0.10 | 4.42 | 7.0% |
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.