DuPont Decomposition
Why does APLLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.9% = 9.2% × 0.84 × 1.54
Latest: FY2026
Profitability
Net Margin
9.2%
10.0% →9.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.73x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.36x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.9 pp over 5 years. Driven by asset turnover improving (0.73x → 0.84x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.0% | 0.73 | 1.36 | 9.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.2% | 0.89 | 1.41 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 10.1% | 0.95 | 1.34 | 12.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.86 | 1.50 | 11.2% |
| FY2026 | ₹0Cr | ₹0Cr | 9.2% | 0.84 | 1.54 | 11.9% |
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.