DuPont Decomposition
Why does ATAM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.3% = 10.4% × 1.12 × 1.48
Latest: FY2025
Profitability
Net Margin
10.4%
6.7% →10.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
1.02x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
1.86x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 4 years. Driven by net margin improving (6.7% → 10.4%), asset turnover improving (1.02x → 1.12x), leverage falling (1.86x → 1.48x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.7% | 1.02 | 1.86 | 12.8% |
| FY2023 | ₹0Cr | ₹0Cr | 15.7% | 1.28 | 1.53 | 30.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 1.06 | 1.60 | 18.8% |
| FY2025 | ₹0Cr | ₹0Cr | 10.4% | 1.12 | 1.48 | 17.3% |
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.