DuPont Decomposition
Why does APEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 0.5% × 1.25 × 1.24
Latest: FY2025
Profitability
Net Margin
0.5%
4.6% →0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.25x
1.32x →1.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.45x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.0 pp over 4 years. Driven by net margin declining (4.6% → 0.5%), leverage falling (1.45x → 1.24x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.6% | 1.32 | 1.45 | 8.8% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 1.65 | 1.25 | 7.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 1.20 | 1.27 | 2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 0.5% | 1.25 | 1.24 | 0.8% |
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.