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
7.1% = 4.9% × 1.02 × 1.41
Latest: FY2026
Profitability
Net Margin
4.9%
-1.4% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
1.35x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
2.38x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.6 pp over 5 years. Driven by net margin improving (-1.4% → 4.9%), asset turnover declining (1.35x → 1.02x), leverage falling (2.38x → 1.41x).
Historical Decomposition
Last 5 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 | 3.76 | -13.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.7% | 1.41 | 3.48 | -13.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.3% | 1.10 | 3.01 | 0.9% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 1.02 | 1.41 | 7.1% |
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.