DuPont Decomposition
Why does ALLCARGO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 0.2% × 2.11 × 2.88
Latest: FY2025
Profitability
Net Margin
0.2%
1.5% →0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.11x
0.46x →2.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.88x
2.61x →2.88x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin declining (1.5% → 0.2%), asset turnover improving (0.46x → 2.11x), leverage rising (2.61x → 2.88x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.5% | 0.46 | 2.61 | 1.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.4% | 0.46 | 2.90 | -0.5% |
| FY2025 | ₹0Cr | ₹0Cr | 0.2% | 2.11 | 2.88 | 1.4% |
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.