DuPont Decomposition
Why does ARENTERP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.9% = -30.8% × 0.03 × 1.01
Latest: FY2026
Profitability
Net Margin
-30.8%
125.6% →-30.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.02x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.01x
1.03x →1.01x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.4 pp over 5 years. Driven by net margin declining (125.6% → -30.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 125.6% | 0.02 | 1.03 | 2.5% |
| FY2023 | ₹0Cr | ₹0Cr | 15.5% | 0.09 | 1.02 | 1.4% |
| FY2024 | ₹0Cr | ₹0Cr | 45.5% | 0.07 | 1.04 | 3.4% |
| FY2025 | ₹0Cr | ₹0Cr | 14.9% | 0.07 | 1.01 | 1.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -30.8% | 0.03 | 1.01 | -0.9% |
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.