DuPont Decomposition
Why does AKASH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.1% = 1.6% × 0.28 × 2.46
Latest: FY2025
Profitability
Net Margin
1.6%
3.2% →1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.48x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.46x
1.82x →2.46x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.8 pp over 4 years. Driven by net margin declining (3.2% → 1.6%), asset turnover declining (0.48x → 0.28x), leverage rising (1.82x → 2.46x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 0.48 | 1.82 | 2.8% |
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 0.32 | 2.30 | 1.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.4% | 0.28 | 2.50 | 0.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.6% | 0.28 | 2.46 | 1.1% |
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.