DuPont Decomposition
Why does AKUMS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 8.3% × 0.99 × 1.35
Latest: FY2025
Profitability
Net Margin
8.3%
-6.9% →8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.19x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
4.93x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 51.7 pp over 4 years. Driven by net margin improving (-6.9% → 8.3%), asset turnover declining (1.19x → 0.99x), leverage falling (4.93x → 1.35x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -6.9% | 1.19 | 4.93 | -40.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.7% | 1.06 | 4.55 | 13.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.1% | 1.14 | 4.96 | -0.6% |
| FY2025 | ₹0Cr | ₹0Cr | 8.3% | 0.99 | 1.35 | 11.1% |
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.