DuPont Decomposition
Why does ANGELONE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.0% = 21.3% × 0.18 × 3.91
Latest: FY2026
Profitability
Net Margin
21.3%
36.0% →21.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.33x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.91x
3.46x →3.91x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 26.2 pp over 4 years. Driven by net margin declining (36.0% → 21.2%), asset turnover declining (0.33x → 0.18x), leverage rising (3.46x → 3.91x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 36.0% | 0.33 | 3.46 | 41.2% |
| FY2024 | ₹0Cr | ₹0Cr | 33.1% | 0.26 | 4.36 | 37.0% |
| FY2025 | ₹0Cr | ₹0Cr | 27.6% | 0.25 | 3.00 | 20.9% |
| FY2026 | ₹0Cr | ₹0Cr | 21.3% | 0.18 | 3.91 | 15.0% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.