DuPont Decomposition
Why does AUSOMENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 0.9% × 10.51 × 1.23
Latest: FY2026
Profitability
Net Margin
0.9%
20.9% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
10.51x
0.19x →10.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.15x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.5 pp over 5 years. Driven by net margin declining (20.9% → 0.9%), asset turnover improving (0.19x → 10.51x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.9% | 0.19 | 1.15 | 4.6% |
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 1.03 | 1.48 | 1.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.9% | 7.44 | 1.04 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 12.88 | 1.30 | 13.7% |
| FY2026 | ₹0Cr | ₹0Cr | 0.9% | 10.51 | 1.23 | 12.1% |
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.