DuPont Decomposition
Why does ANDREWYU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.8% = -0.9% × 0.41 × 2.22
Latest: FY2025
Profitability
Net Margin
-0.9%
-1.6% →-0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.41x
0.52x →0.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.22x
1.71x →2.22x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-1%. Driven by asset turnover declining (0.52x → 0.41x), leverage rising (1.71x → 2.22x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.6% | 0.52 | 1.71 | -1.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.50 | 1.93 | 3.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -15.6% | 0.43 | 2.09 | -14.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.9% | 0.41 | 2.22 | -0.8% |
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.