DuPont Decomposition
Why does AETHER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.9% = 18.9% × 0.36 × 1.30
Latest: FY2026
Profitability
Net Margin
18.9%
18.5% →18.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.77x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.99x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.2 pp over 5 years. Driven by asset turnover declining (0.77x → 0.36x), leverage falling (1.99x → 1.30x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.5% | 0.77 | 1.99 | 28.2% |
| FY2023 | ₹0Cr | ₹0Cr | 20.0% | 0.47 | 1.11 | 10.5% |
| FY2024 | ₹0Cr | ₹0Cr | 13.8% | 0.25 | 1.16 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 18.9% | 0.32 | 1.19 | 7.1% |
| FY2026 | ₹0Cr | ₹0Cr | 18.9% | 0.36 | 1.30 | 8.9% |
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.