DuPont Decomposition
Why does ALICON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.5% = 1.9% × 1.23 × 2.29
Latest: FY2026
Profitability
Net Margin
1.9%
2.3% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
1.03x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.29x
2.25x →2.29x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~5%. Driven by asset turnover improving (1.03x → 1.23x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 1.03 | 2.25 | 5.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 1.23 | 2.23 | 10.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.1% | 1.22 | 2.22 | 11.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 1.33 | 2.18 | 7.8% |
| FY2026 | ₹0Cr | ₹0Cr | 1.9% | 1.23 | 2.29 | 5.5% |
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.