DuPont Decomposition
Why does AKSHOPTFBR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-223.8% = -19.9% × 0.46 × 24.26
Latest: FY2025
Profitability
Net Margin
-19.9%
-0.1% →-19.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.65x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
24.26x
4.63x →24.26x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 223.4 pp over 4 years. Driven by net margin declining (-0.1% → -19.9%), asset turnover declining (0.65x → 0.46x), leverage rising (4.63x → 24.26x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.1% | 0.65 | 4.63 | -0.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.8% | 0.75 | 5.03 | -18.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -32.7% | 0.66 | 8.20 | -176.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -19.9% | 0.46 | 24.26 | -223.8% |
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.