DuPont Decomposition
Why does ANGELONE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.8% = 27.6% × 0.25 × 2.99
Latest: FY2025
Profitability
Net Margin
27.6%
32.3% →27.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.11x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.99x
3.46x →2.99x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.4 pp over 3 years. Driven by net margin declining (32.3% → 27.6%), asset turnover improving (0.11x → 0.25x), leverage falling (3.46x → 2.99x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 32.3% | 0.11 | 3.46 | 12.3% |
| FY2024 | ₹0Cr | ₹0Cr | 25.1% | 0.10 | 4.36 | 11.2% |
| FY2025 | ₹0Cr | ₹0Cr | 27.6% | 0.25 | 2.99 | 20.8% |
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.