DuPont Decomposition
Why does ALMONDZ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.2% = 11.7% × 0.42 × 1.45
Latest: FY2025
Profitability
Net Margin
11.7%
15.1% →11.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.10x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.29x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 3 years. Driven by net margin declining (15.1% → 11.7%), asset turnover improving (0.10x → 0.42x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.1% | 0.10 | 1.29 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 13.2% | 0.14 | 1.45 | 2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 0.42 | 1.45 | 7.2% |
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.