DuPont Decomposition
Why does ASAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
192.1% = 2.2% × 2.63 × 33.69
Latest: FY2025
Profitability
Net Margin
2.2%
2.2% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.63x
2.63x →2.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
33.69x
33.69x →33.69x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 2.63 | 33.69 | 192.1% |
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.