DuPont Decomposition
Why does ARIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.9% = 0.3% × 1.10 × 2.96
Latest: FY2025
Profitability
Net Margin
0.3%
-1.4% →0.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.10x
1.35x →1.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.96x
2.38x →2.96x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 4 years. Driven by net margin improving (-1.4% → 0.3%), asset turnover declining (1.35x → 1.10x), leverage rising (2.38x → 2.96x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.4% | 1.35 | 2.38 | -4.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.9% | 1.89 | 3.81 | -13.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.7% | 1.41 | 3.47 | -13.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.3% | 1.10 | 2.96 | 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.