DuPont Decomposition
Why does ATLASCYCLE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.5% = 101.9% × 0.02 × 1.24
Latest: FY2025
Profitability
Net Margin
101.9%
10.3% →101.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.01x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.28x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.3 pp over 2 years. Driven by net margin improving (10.3% → 101.9%).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0.1Cr | ₹0Cr | 10.3% | 0.01 | 1.28 | 0.2% |
| FY2025 | ₹0Cr | ₹0Cr | 101.9% | 0.02 | 1.24 | 2.5% |
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.