DuPont Decomposition
Why does AURIONPRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 15.9% × 0.60 × 1.29
Latest: FY2025
Profitability
Net Margin
15.9%
15.4% →15.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.78x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.71x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.1 pp over 3 years. Driven by asset turnover declining (0.78x → 0.60x), leverage falling (1.71x → 1.29x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.4% | 0.78 | 1.71 | 20.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 0.62 | 1.54 | 6.4% |
| FY2025 | ₹0Cr | ₹0Cr | 15.9% | 0.60 | 1.29 | 12.3% |
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.