DuPont Decomposition
Why does AGROPHOS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.9% = -4.9% × 1.09 × 2.05
Latest: FY2024
Profitability
Net Margin
-4.9%
3.8% →-4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.09x
1.01x →1.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
2.50x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.5 pp over 2 years. Driven by net margin declining (3.8% → -4.9%), leverage falling (2.50x → 2.05x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 1.01 | 2.50 | 9.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.9% | 1.09 | 2.05 | -10.9% |
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.