DuPont Decomposition
Why does ASKAUTOLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.7% = 7.1% × 1.63 × 1.95
Latest: FY2026
Profitability
Net Margin
7.1%
4.1% →7.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.63x
1.81x →1.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.95x
1.75x →1.95x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 5 years. Driven by net margin improving (4.1% → 7.1%), asset turnover declining (1.81x → 1.63x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.1% | 1.81 | 1.75 | 13.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 1.97 | 1.99 | 19.1% |
| FY2024 | ₹0Cr | ₹0Cr | 5.9% | 1.89 | 1.92 | 21.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.9% | 1.87 | 1.84 | 23.7% |
| FY2026 | ₹0Cr | ₹0Cr | 7.1% | 1.63 | 1.95 | 22.7% |
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.