DuPont Decomposition
Why does ARTNIRMAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 7.3% × 0.40 × 1.85
Latest: FY2025
Profitability
Net Margin
7.3%
-30.0% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.81x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.32x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 37.7 pp over 4 years. Driven by net margin improving (-30.0% → 7.3%), asset turnover declining (0.81x → 0.40x), leverage rising (1.32x → 1.85x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -30.0% | 0.81 | 1.32 | -32.3% |
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 0.38 | 1.52 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 0.64 | 1.51 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.40 | 1.85 | 5.3% |
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.