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
8.6% = 8.8% × 0.79 × 1.24
Latest: FY2025
Profitability
Net Margin
8.8%
7.7% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
0.21x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.23x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 3 years. Driven by net margin improving (7.7% → 8.8%), asset turnover improving (0.21x → 0.79x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.21 | 1.23 | 2.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 0.19 | 1.27 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 0.79 | 1.24 | 8.6% |
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.