DuPont Decomposition
Why does ASALCBR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.7% = 8.7% × 1.19 × 1.23
Latest: FY2026
Profitability
Net Margin
8.7%
11.8% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
1.28x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.28x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.7 pp over 5 years. Driven by net margin declining (11.8% → 8.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 1.28 | 1.28 | 19.4% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 1.30 | 1.48 | 11.4% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 1.22 | 1.46 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 1.50 | 1.38 | 15.7% |
| FY2026 | ₹0Cr | ₹0Cr | 8.7% | 1.19 | 1.23 | 12.7% |
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.