DuPont Decomposition
Why does ASHIMASYN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.4% = -181.3% × 0.02 × 1.68
Latest: FY2025
Profitability
Net Margin
-181.3%
-3.2% →-181.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.65x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.45x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.3 pp over 3 years. Driven by net margin declining (-3.2% → -181.3%), asset turnover declining (0.65x → 0.02x), leverage rising (1.45x → 1.68x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -3.2% | 0.65 | 1.45 | -3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 29.3% | 0.61 | 1.72 | 30.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -181.3% | 0.02 | 1.68 | -6.4% |
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.