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
23.7% = 7.0% × 1.84 × 1.84
Latest: FY2025
Profitability
Net Margin
7.0%
4.1% →7.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.84x
1.81x →1.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
1.75x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.7 pp over 4 years. Driven by net margin improving (4.1% → 7.0%).
Historical Decomposition
Last 4 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 | 5.8% | 1.91 | 1.92 | 21.3% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 1.84 | 1.84 | 23.7% |
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.