DuPont Decomposition
Why does ALPHAGEO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.3% = -4.9% × 0.40 × 1.16
Latest: FY2025
Profitability
Net Margin
-4.9%
7.9% →-4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.50x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.14x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.8 pp over 4 years. Driven by net margin declining (7.9% → -4.9%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.9% | 0.50 | 1.14 | 4.5% |
| FY2023 | ₹0Cr | ₹0Cr | 19.7% | 0.23 | 1.03 | 4.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.4% | 0.33 | 1.05 | 0.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -4.9% | 0.40 | 1.16 | -2.3% |
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.