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
-11.7% = -12.7% × 0.39 × 2.37
Latest: FY2025
Profitability
Net Margin
-12.7%
-21.7% →-12.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.12x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.37x
1.76x →2.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.3 pp over 3 years. Driven by net margin improving (-21.7% → -12.7%), asset turnover improving (0.12x → 0.39x), leverage rising (1.76x → 2.37x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -21.7% | 0.12 | 1.76 | -4.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -7.8% | 0.09 | 3.57 | -2.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.7% | 0.39 | 2.37 | -11.7% |
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.