DuPont Decomposition
Why does ANMOL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.5% = 0.8% × 4.12 × 2.89
Latest: FY2026
Profitability
Net Margin
0.8%
1.5% →0.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.12x
3.57x →4.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.89x
4.91x →2.89x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.2 pp over 5 years. Driven by asset turnover improving (3.57x → 4.12x), leverage falling (4.91x → 2.89x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 3.57 | 4.91 | 25.8% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 3.03 | 5.88 | 23.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 5.31 | 2.82 | 20.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 3.55 | 3.34 | 6.5% |
| FY2026 | ₹0Cr | ₹0Cr | 0.8% | 4.12 | 2.89 | 9.5% |
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.