DuPont Decomposition
Why does ASTRAMICRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.0% = 14.6% × 0.57 × 1.69
Latest: FY2025
Profitability
Net Margin
14.6%
5.2% →14.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.24x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
1.64x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.9 pp over 3 years. Driven by net margin improving (5.2% → 14.6%), asset turnover improving (0.24x → 0.57x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.2% | 0.24 | 1.64 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 15.4% | 0.24 | 1.53 | 5.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.6% | 0.57 | 1.69 | 14.0% |
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.