DuPont Decomposition
Why does AVANTIFEED earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.4% = 10.0% × 1.42 × 1.30
Latest: FY2026
Profitability
Net Margin
10.0%
4.5% →10.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
1.98x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.33x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.8 pp over 5 years. Driven by net margin improving (4.5% → 10.0%), asset turnover declining (1.98x → 1.42x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.5% | 1.98 | 1.33 | 11.7% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 1.84 | 1.31 | 13.3% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 1.71 | 1.31 | 15.1% |
| FY2025 | ₹0Cr | ₹0Cr | 9.4% | 1.52 | 1.31 | 18.9% |
| FY2026 | ₹0Cr | ₹0Cr | 10.0% | 1.42 | 1.30 | 18.4% |
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.