DuPont Decomposition
Why does AJOONI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.8% = 2.9% × 1.21 × 1.08
Latest: FY2025
Profitability
Net Margin
2.9%
1.5% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
0.00x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.41x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.8 pp over 3 years. Driven by net margin improving (1.5% → 2.9%), asset turnover improving (0.00x → 1.21x), leverage falling (1.41x → 1.08x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.5% | 0.00 | 1.41 | 0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 1.69 | 1.11 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 1.21 | 1.08 | 3.8% |
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.