DuPont Decomposition
Why does APLAPOLLO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.7% = 5.4% × 2.53 × 1.67
Latest: FY2026
Profitability
Net Margin
5.4%
4.9% →5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.53x
2.84x →2.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.67x
1.81x →1.67x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.4 pp over 5 years. Driven by asset turnover declining (2.84x → 2.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 2.84 | 1.81 | 25.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.1% | 2.68 | 1.95 | 21.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 2.44 | 1.99 | 20.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 2.63 | 1.80 | 18.0% |
| FY2026 | ₹0Cr | ₹0Cr | 5.4% | 2.53 | 1.67 | 22.7% |
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.