DuPont Decomposition
Why does ADVENZYMES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.2% = 20.6% × 0.39 × 1.14
Latest: FY2025
Profitability
Net Margin
20.6%
23.4% →20.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.42x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.16x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.1 pp over 4 years. Driven by net margin declining (23.4% → 20.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.4% | 0.42 | 1.16 | 11.4% |
| FY2023 | ₹0Cr | ₹0Cr | 19.2% | 0.38 | 1.15 | 8.4% |
| FY2024 | ₹0Cr | ₹0Cr | 21.9% | 0.41 | 1.16 | 10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 20.6% | 0.39 | 1.14 | 9.2% |
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.