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
24.3% = 7.7% × 1.11 × 2.85
Latest: FY2026
Profitability
Net Margin
7.7%
6.9% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.52x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.85x
4.65x →2.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.7 pp over 5 years. Driven by asset turnover improving (0.52x → 1.11x), leverage falling (4.65x → 2.85x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.9% | 0.52 | 4.65 | 16.6% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 0.59 | 4.56 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 10.9% | 0.79 | 3.56 | 30.9% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 0.70 | 3.16 | 23.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.7% | 1.11 | 2.85 | 24.3% |
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.