DuPont Decomposition
Why does AMBIKCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.5% = 9.2% × 0.71 × 1.16
Latest: FY2026
Profitability
Net Margin
9.2%
20.4% →9.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
1.07x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.14x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.3 pp over 5 years. Driven by net margin declining (20.4% → 9.2%), asset turnover declining (1.07x → 0.71x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.4% | 1.07 | 1.14 | 24.8% |
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.83 | 1.20 | 13.7% |
| FY2024 | ₹0Cr | ₹0Cr | 7.9% | 0.75 | 1.25 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 9.4% | 0.61 | 1.27 | 7.3% |
| FY2026 | ₹0Cr | ₹0Cr | 9.2% | 0.71 | 1.16 | 7.5% |
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.