DuPont Decomposition
Why does ATGL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.6% = 13.2% × 0.65 × 1.82
Latest: FY2025
Profitability
Net Margin
13.2%
8.2% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.21x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
1.92x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.2 pp over 3 years. Driven by net margin improving (8.2% → 13.2%), asset turnover improving (0.21x → 0.65x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.2% | 0.21 | 1.92 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 13.3% | 0.19 | 1.84 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.65 | 1.82 | 15.6% |
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.