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
10.0% = 4.8% × 0.96 × 2.18
Latest: FY2026
Profitability
Net Margin
4.8%
9.6% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.72x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.18x
1.80x →2.18x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.4 pp over 4 years. Driven by net margin declining (9.6% → 4.8%), asset turnover improving (0.72x → 0.96x), leverage rising (1.80x → 2.18x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.6% | 0.72 | 1.80 | 12.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.0% | 0.55 | 2.50 | 9.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -11.7% | 0.60 | 1.83 | -12.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 0.96 | 2.18 | 10.0% |
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.