DuPont Decomposition
Why does AROGRANITE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-3.5% = -5.2% × 0.29 × 2.26
Latest: FY2025
Profitability
Net Margin
-5.2%
-3.5% →-5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.36x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
2.36x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-3%. Driven by net margin declining (-3.5% → -5.2%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -3.5% | 0.36 | 2.36 | -3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 0.35 | 2.32 | 0.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -5.2% | 0.29 | 2.26 | -3.5% |
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.