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
10.3% = 6.5% × 0.86 × 1.86
Latest: FY2026
Profitability
Net Margin
6.5%
15.1% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.76x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
1.40x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.7 pp over 5 years. Driven by net margin declining (15.1% → 6.5%), leverage rising (1.40x → 1.86x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.1% | 0.76 | 1.40 | 16.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -40.7% | 0.37 | 1.49 | -22.2% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.79 | 1.38 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.1% | 0.78 | 1.49 | 10.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 0.86 | 1.86 | 10.3% |
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.