DuPont Decomposition
Why does AUTOAXLES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.0% = 7.5% × 1.43 × 1.38
Latest: FY2026
Profitability
Net Margin
7.5%
5.1% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
1.39x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.68x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 5 years. Driven by net margin improving (5.1% → 7.5%), leverage falling (1.68x → 1.38x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.1% | 1.39 | 1.68 | 12.0% |
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 1.95 | 1.52 | 21.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.6% | 1.77 | 1.40 | 19.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 1.53 | 1.38 | 15.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.5% | 1.43 | 1.38 | 15.0% |
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.