DuPont Decomposition
Why does ASHOKAMET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.9% = 14.1% × 0.27 × 1.28
Latest: FY2025
Profitability
Net Margin
14.1%
3.1% →14.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
0.90x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.83x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~5%. Driven by net margin improving (3.1% → 14.1%), asset turnover declining (0.90x → 0.27x), leverage falling (1.83x → 1.28x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 0.90 | 1.83 | 5.2% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 0.38 | 1.31 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 0.48 | 1.32 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.1% | 0.27 | 1.28 | 4.9% |
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.