DuPont Decomposition
Why does AURUM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.1% = -2.7% × 0.40 × 1.87
Latest: FY2026
Profitability
Net Margin
-2.7%
-22.8% →-2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.32x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
1.76x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.9 pp over 4 years. Driven by net margin improving (-22.8% → -2.7%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -22.8% | 0.32 | 1.76 | -13.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -26.1% | 0.33 | 3.57 | -30.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.9% | 0.37 | 2.46 | -11.9% |
| FY2026 | ₹0Cr | ₹-0Cr | -2.7% | 0.40 | 1.87 | -2.1% |
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.