DuPont Decomposition
Why does NATIONALUM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
29.6% = 31.6% × 0.73 × 1.29
Latest: FY2025
Profitability
Net Margin
31.6%
21.0% →31.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.80x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.39x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.1 pp over 4 years. Driven by net margin improving (21.0% → 31.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.0% | 0.80 | 1.39 | 23.5% |
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 0.80 | 1.34 | 10.9% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 0.68 | 1.34 | 13.8% |
| FY2025 | ₹0Cr | ₹0Cr | 31.6% | 0.73 | 1.29 | 29.6% |
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.