DuPont Decomposition
Why does ALKALI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-13.0% = -7.0% × 0.89 × 2.09
Latest: FY2025
Profitability
Net Margin
-7.0%
3.8% →-7.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.91x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.09x
1.91x →2.09x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.7 pp over 4 years. Driven by net margin declining (3.8% → -7.0%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.8% | 0.91 | 1.91 | 6.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.82 | 2.00 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 0.75 | 2.13 | 2.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -7.0% | 0.89 | 2.09 | -13.0% |
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.