DuPont Decomposition

Why does AYMSYNTEX earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

2.0% = 0.8% × 1.42 × 1.78

Latest: FY2025

Profitability

Net Margin

0.8%

0.3% →0.8%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

1.42x

0.36x →1.42x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.78x

2.19x →1.78x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 1.8 pp over 3 years. Driven by asset turnover improving (0.36x → 1.42x), leverage falling (2.19x → 1.78x).

Historical Decomposition

Last 3 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20230Cr0Cr0.3%0.362.190.2%
FY20240Cr0Cr5.2%0.362.424.6%
FY20250Cr0Cr0.8%1.421.782.0%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.