DuPont Decomposition
Why does ALIVUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.2% = 20.8% × 0.69 × 1.21
Latest: FY2025
Profitability
Net Margin
20.8%
23.6% →20.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.23x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.26x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.4 pp over 3 years. Driven by net margin declining (23.6% → 20.8%), asset turnover improving (0.23x → 0.69x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 23.6% | 0.23 | 1.26 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 18.3% | 0.19 | 1.22 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 20.8% | 0.69 | 1.21 | 17.2% |
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.