DuPont Decomposition
Why does AWL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 1.4% × 3.02 × 2.37
Latest: FY2026
Profitability
Net Margin
1.4%
1.5% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.02x
2.54x →3.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.37x
2.80x →2.37x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by asset turnover improving (2.54x → 3.02x), leverage falling (2.80x → 2.37x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 2.54 | 2.80 | 10.6% |
| FY2023 | ₹0Cr | ₹0Cr | 1.0% | 2.77 | 2.57 | 7.1% |
| FY2024 | ₹0Cr | ₹0Cr | 0.3% | 2.58 | 2.38 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 2.84 | 2.38 | 13.0% |
| FY2026 | ₹0Cr | ₹0Cr | 1.4% | 3.02 | 2.37 | 10.0% |
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.