DuPont Decomposition
Why does ASIANPAINT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.3% = 10.8% × 1.11 × 1.51
Latest: FY2025
Profitability
Net Margin
10.8%
16.2% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.34x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.45x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.4 pp over 3 years. Driven by net margin declining (16.2% → 10.8%), asset turnover improving (0.34x → 1.11x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.2% | 0.34 | 1.45 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.29 | 1.60 | 6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 1.11 | 1.51 | 18.3% |
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.