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
7.3% = 9.6% × 0.59 × 1.27
Latest: FY2025
Profitability
Net Margin
9.6%
9.7% →9.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.19x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.20x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.0 pp over 3 years. Driven by asset turnover improving (0.19x → 0.59x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 0.19 | 1.20 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.8% | 0.19 | 1.25 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 9.6% | 0.59 | 1.27 | 7.3% |
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.