DuPont Decomposition
Why does ASMS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.2% = 4.4% × 1.23 × 1.15
Latest: FY2025
Profitability
Net Margin
4.4%
-76.7% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
0.04x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
24.36x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 81.9 pp over 4 years. Driven by net margin improving (-76.7% → 4.4%), asset turnover improving (0.04x → 1.23x), leverage falling (24.36x → 1.15x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -76.7% | 0.04 | 24.36 | -75.7% |
| FY2023 | ₹0Cr | ₹0Cr | 209.4% | 1.89 | 1.09 | 433.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 1.64 | 1.12 | 5.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.23 | 1.15 | 6.2% |
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.