DuPont Decomposition
Why does AYE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 11.8% × 0.21 × 3.07
Latest: FY2026
Profitability
Net Margin
11.8%
-12.5% →11.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.18x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.07x
3.28x →3.07x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.9 pp over 5 years. Driven by net margin improving (-12.5% → 11.8%), leverage falling (3.28x → 3.07x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -12.5% | 0.18 | 3.28 | -7.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 0.19 | 4.14 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 17.5% | 0.20 | 3.95 | 13.9% |
| FY2025 | ₹0Cr | ₹0Cr | 12.4% | 0.22 | 3.82 | 10.3% |
| FY2026 | ₹0Cr | ₹0Cr | 11.8% | 0.21 | 3.07 | 7.7% |
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.