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
13.0% = 1.9% × 2.83 × 2.38
Latest: FY2025
Profitability
Net Margin
1.9%
0.7% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.83x
0.66x →2.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.38x
2.57x →2.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.9 pp over 3 years. Driven by net margin improving (0.7% → 1.9%), asset turnover improving (0.66x → 2.83x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 0.66 | 2.57 | 1.1% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.67 | 2.38 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 2.83 | 2.38 | 13.0% |
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.