DuPont Decomposition
Why does ATLANTAELE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
29.8% = 8.5% × 0.99 × 3.55
Latest: FY2025
Profitability
Net Margin
8.5%
9.0% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.49x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.55x
5.34x →3.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 41.4 pp over 4 years. Driven by asset turnover declining (1.49x → 0.99x), leverage falling (5.34x → 3.55x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.0% | 1.49 | 5.34 | 71.2% |
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 1.55 | 3.40 | 53.0% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 1.53 | 2.45 | 27.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.5% | 0.99 | 3.55 | 29.8% |
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.