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
6.5% = 0.6% × 3.55 × 3.34
Latest: FY2025
Profitability
Net Margin
0.6%
1.3% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.55x
3.03x →3.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.34x
5.88x →3.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.1 pp over 3 years. Driven by asset turnover improving (3.03x → 3.55x), leverage falling (5.88x → 3.34x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 3.03 | 5.88 | 23.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 5.32 | 2.82 | 20.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 3.55 | 3.34 | 6.5% |
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.