DuPont Decomposition
Why does ATHERENERG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-20.1% = -14.1% × 0.78 × 1.84
Latest: FY2026
Profitability
Net Margin
-14.1%
-84.2% →-14.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.50x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
3.64x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 132.9 pp over 4 years. Driven by net margin improving (-84.2% → -14.1%), asset turnover improving (0.50x → 0.78x), leverage falling (3.64x → 1.84x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -84.2% | 0.50 | 3.64 | -153.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -48.6% | 0.90 | 3.22 | -140.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -60.5% | 0.92 | 3.51 | -194.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -14.1% | 0.78 | 1.84 | -20.1% |
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.