DuPont Decomposition
Why does AFFLE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.4% = 16.8% × 0.61 × 1.21
Latest: FY2026
Profitability
Net Margin
16.8%
19.8% →16.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.59x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.55x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.7 pp over 5 years. Driven by net margin declining (19.8% → 16.8%), leverage falling (1.55x → 1.21x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 19.8% | 0.59 | 1.55 | 18.1% |
| FY2023 | ₹0Cr | ₹0Cr | 17.1% | 0.71 | 1.37 | 16.7% |
| FY2024 | ₹0Cr | ₹0Cr | 16.1% | 0.56 | 1.31 | 11.9% |
| FY2025 | ₹0Cr | ₹0Cr | 16.9% | 0.63 | 1.23 | 13.0% |
| FY2026 | ₹0Cr | ₹0Cr | 16.8% | 0.61 | 1.21 | 12.4% |
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.