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
15.8% = 7.6% × 1.50 × 1.38
Latest: FY2025
Profitability
Net Margin
7.6%
7.3% →7.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.50x
0.60x →1.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.52x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.1 pp over 3 years. Driven by asset turnover improving (0.60x → 1.50x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 0.60 | 1.52 | 6.7% |
| FY2024 | ₹0Cr | ₹0Cr | 7.7% | 0.46 | 1.40 | 5.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 1.50 | 1.38 | 15.8% |
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.