DuPont Decomposition
Why does ASHAPURMIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.2% = 11.0% × 0.69 × 3.22
Latest: FY2025
Profitability
Net Margin
11.0%
5.7% →11.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.23x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.22x
4.59x →3.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.2 pp over 3 years. Driven by net margin improving (5.7% → 11.0%), asset turnover improving (0.23x → 0.69x), leverage falling (4.59x → 3.22x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 0.23 | 4.59 | 6.0% |
| FY2024 | ₹0Cr | ₹0Cr | 15.3% | 0.13 | 3.56 | 7.2% |
| FY2025 | ₹0Cr | ₹0Cr | 11.0% | 0.69 | 3.22 | 24.2% |
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.