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% = 0.4% × 1.19 × 3.02
Latest: FY2026
Profitability
Net Margin
0.4%
4.9% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
1.95x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.02x
3.09x →3.02x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 27.9 pp over 5 years. Driven by net margin declining (4.9% → 0.4%), asset turnover declining (1.95x → 1.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 1.95 | 3.09 | 29.3% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 2.46 | 2.61 | 22.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 1.77 | 2.90 | 5.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.3% | 0.26 | 3.14 | 2.7% |
| FY2026 | ₹0Cr | ₹0Cr | 0.4% | 1.19 | 3.02 | 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.