DuPont Decomposition
Why does ATULAUTO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 5.2% × 1.05 × 1.59
Latest: FY2026
Profitability
Net Margin
5.2%
-8.1% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.56x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.97x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.8 pp over 5 years. Driven by net margin improving (-8.1% → 5.2%), asset turnover improving (0.56x → 1.05x), leverage falling (1.97x → 1.59x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -8.1% | 0.56 | 1.97 | -9.0% |
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 0.83 | 1.75 | 1.1% |
| FY2024 | ₹0Cr | ₹0Cr | 1.7% | 0.80 | 1.56 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 1.04 | 1.54 | 4.9% |
| FY2026 | ₹0Cr | ₹0Cr | 5.2% | 1.05 | 1.59 | 8.7% |
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.