DuPont Decomposition
Why does AWFIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 5.6% × 0.48 × 5.46
Latest: FY2025
Profitability
Net Margin
5.6%
-22.2% →5.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.46x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.46x
5.91x →5.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 75.1 pp over 4 years. Driven by net margin improving (-22.2% → 5.6%), leverage falling (5.91x → 5.46x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -22.2% | 0.46 | 5.91 | -60.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -8.6% | 0.59 | 5.49 | -27.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.1% | 0.61 | 5.56 | -7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 5.6% | 0.48 | 5.46 | 14.8% |
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.