DuPont Decomposition
Why does ANTHEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.7% = 24.5% × 0.66 × 1.17
Latest: FY2025
Profitability
Net Margin
24.5%
32.9% →24.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.76x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.19x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.2 pp over 4 years. Driven by net margin declining (32.9% → 24.5%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 32.9% | 0.76 | 1.19 | 29.9% |
| FY2023 | ₹0Cr | ₹0Cr | 36.4% | 0.52 | 1.16 | 22.1% |
| FY2024 | ₹0Cr | ₹0Cr | 25.9% | 0.59 | 1.25 | 19.1% |
| FY2025 | ₹0Cr | ₹0Cr | 24.5% | 0.66 | 1.17 | 18.7% |
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.