DuPont Decomposition
Why does ATUL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.9% = 10.8% × 0.79 × 1.27
Latest: FY2026
Profitability
Net Margin
10.8%
11.7% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
0.89x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.29x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.6 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.7% | 0.89 | 1.29 | 13.5% |
| FY2023 | ₹0Cr | ₹0Cr | 9.6% | 0.93 | 1.23 | 11.0% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 0.72 | 1.27 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.80 | 1.25 | 8.6% |
| FY2026 | ₹0Cr | ₹0Cr | 10.8% | 0.79 | 1.27 | 10.9% |
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.