DuPont Decomposition
Why does AMAGI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.1% = 4.8% × 0.64 × 1.34
Latest: FY2026
Profitability
Net Margin
4.8%
-47.2% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.64x
0.48x →0.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
2.18x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 53.9 pp over 4 years. Driven by net margin improving (-47.2% → 4.8%), asset turnover improving (0.48x → 0.64x), leverage falling (2.18x → 1.34x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -47.2% | 0.48 | 2.18 | -49.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -27.9% | 0.67 | 2.63 | -49.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -5.9% | 0.82 | 2.80 | -13.5% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 0.64 | 1.34 | 4.1% |
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.