DuPont Decomposition
Why does ASTRAZEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.0% = 6.8% × 1.13 × 1.97
Latest: FY2025
Profitability
Net Margin
6.8%
6.1% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
0.29x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.97x
1.67x →1.97x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.1 pp over 3 years. Driven by asset turnover improving (0.29x → 1.13x), leverage rising (1.67x → 1.97x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.29 | 1.67 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 10.3% | 0.36 | 1.51 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 1.13 | 1.97 | 15.0% |
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.