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
-194.1% = -60.5% × 0.92 × 3.51
Latest: FY2024
Profitability
Net Margin
-60.5%
-84.2% →-60.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.50x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.51x
3.64x →3.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 41.1 pp over 3 years. Driven by net margin improving (-84.2% → -60.5%), asset turnover improving (0.50x → 0.92x).
Historical Decomposition
Last 3 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% |
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.