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
4.8% = 3.0% × 1.05 × 1.52
Latest: FY2025
Profitability
Net Margin
3.0%
0.6% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.84x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
1.75x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.9 pp over 3 years. Driven by net margin improving (0.6% → 3.0%), asset turnover improving (0.84x → 1.05x), leverage falling (1.75x → 1.52x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 0.84 | 1.75 | 0.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 0.80 | 1.56 | 1.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 1.05 | 1.52 | 4.8% |
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.