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
7.1% = 18.9% × 0.32 × 1.19
Latest: FY2025
Profitability
Net Margin
18.9%
18.5% →18.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.77x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.99x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.0 pp over 4 years. Driven by asset turnover declining (0.77x → 0.32x), leverage falling (1.99x → 1.19x).
Historical Decomposition
Last 4 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% |
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.