DuPont Decomposition
Why does AEGISLOG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 10.8% × 0.58 × 2.39
Latest: FY2026
Profitability
Net Margin
10.8%
7.7% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
1.15x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.39x
1.85x →2.39x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.6 pp over 5 years. Driven by net margin improving (7.7% → 10.8%), asset turnover declining (1.15x → 0.58x), leverage rising (1.85x → 2.39x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.7% | 1.15 | 1.85 | 16.4% |
| FY2023 | ₹0Cr | ₹0Cr | 5.4% | 1.20 | 2.03 | 13.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 0.87 | 2.07 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 9.8% | 0.60 | 2.43 | 14.3% |
| FY2026 | ₹0Cr | ₹0Cr | 10.8% | 0.58 | 2.39 | 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.