DuPont Decomposition
Why does ASIANENE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.6% = 9.1% × 0.78 × 1.49
Latest: FY2025
Profitability
Net Margin
9.1%
-26.6% →9.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.44x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.30x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.7 pp over 3 years. Driven by net margin improving (-26.6% → 9.1%), asset turnover improving (0.44x → 0.78x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -26.6% | 0.44 | 1.30 | -15.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.79 | 1.38 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.1% | 0.78 | 1.49 | 10.6% |
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.