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
1.1% = 14.9% × 0.07 × 1.01
Latest: FY2025
Profitability
Net Margin
14.9%
15.5% →14.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.09x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.01x
1.02x →1.01x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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% |
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.