DuPont Decomposition
Why does ALLTIME earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.0% = 8.5% × 0.99 × 2.26
Latest: FY2025
Profitability
Net Margin
8.5%
6.2% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.12x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
2.75x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~19%. Driven by net margin improving (6.2% → 8.5%), asset turnover declining (1.12x → 0.99x), leverage falling (2.75x → 2.26x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.2% | 1.12 | 2.75 | 18.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 1.10 | 2.54 | 17.9% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 1.23 | 2.06 | 22.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.5% | 0.99 | 2.26 | 19.0% |
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.