DuPont Decomposition
Why does ACCELYA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
46.5% = 24.4% × 1.18 × 1.62
Latest: FY2026
Profitability
Net Margin
24.4%
20.7% →24.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
1.04x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.35x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.5 pp over 4 years. Driven by net margin improving (20.7% → 24.4%), asset turnover improving (1.04x → 1.18x), leverage rising (1.35x → 1.62x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.7% | 1.04 | 1.35 | 29.0% |
| FY2024 | ₹0Cr | ₹0Cr | 27.0% | 1.27 | 1.37 | 46.9% |
| FY2025 | ₹0Cr | ₹0Cr | 18.4% | 1.24 | 1.45 | 33.2% |
| FY2026 | ₹0Cr | ₹0Cr | 24.4% | 1.18 | 1.62 | 46.5% |
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.