DuPont Decomposition
Why does ALKYLAMINE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.3% = 12.0% × 0.87 × 1.28
Latest: FY2025
Profitability
Net Margin
12.0%
11.8% →12.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.26x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.36x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.1 pp over 3 years. Driven by asset turnover improving (0.26x → 0.87x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.8% | 0.26 | 1.36 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 10.8% | 0.23 | 1.25 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 12.0% | 0.87 | 1.28 | 13.3% |
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.