DuPont Decomposition
Why does AEROENTER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.8% = 9.2% × 0.60 × 1.40
Latest: FY2026
Profitability
Net Margin
9.2%
10.5% →9.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.89x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.87x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.7 pp over 5 years. Driven by net margin declining (10.5% → 9.2%), asset turnover declining (0.89x → 0.60x), leverage falling (1.87x → 1.40x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.5% | 0.89 | 1.87 | 17.5% |
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.95 | 1.88 | 16.4% |
| FY2024 | ₹0Cr | ₹0Cr | 51.5% | 0.56 | 1.38 | 39.8% |
| FY2025 | ₹0Cr | ₹0Cr | 9.2% | 0.59 | 1.39 | 7.6% |
| FY2026 | ₹0Cr | ₹0Cr | 9.2% | 0.60 | 1.40 | 7.8% |
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.