DuPont Decomposition
Why does APOLLO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.6% = 12.5% × 0.38 × 1.80
Latest: FY2026
Profitability
Net Margin
12.5%
6.0% →12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.41x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
1.88x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.0 pp over 5 years. Driven by net margin improving (6.0% → 12.5%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.0% | 0.41 | 1.88 | 4.6% |
| FY2023 | ₹0Cr | ₹0Cr | 6.3% | 0.43 | 1.81 | 4.9% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.39 | 1.84 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 10.0% | 0.43 | 2.14 | 9.3% |
| FY2026 | ₹0Cr | ₹0Cr | 12.5% | 0.38 | 1.80 | 8.6% |
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.