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
-13.5% = -5.9% × 0.82 × 2.80
Latest: FY2025
Profitability
Net Margin
-5.9%
-47.2% →-5.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.48x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.80x
2.18x →2.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 36.4 pp over 3 years. Driven by net margin improving (-47.2% → -5.9%), asset turnover improving (0.48x → 0.82x), leverage rising (2.18x → 2.80x).
Historical Decomposition
Last 3 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% |
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.