DuPont Decomposition
Why does ASPINWALL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.5% = 4.4% × 1.06 × 1.62
Latest: FY2025
Profitability
Net Margin
4.4%
9.7% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.20x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.39x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.6 pp over 3 years. Driven by net margin declining (9.7% → 4.4%), asset turnover declining (1.20x → 1.06x), leverage rising (1.39x → 1.62x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 1.20 | 1.39 | 16.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 1.18 | 1.37 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.06 | 1.62 | 7.5% |
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.