DuPont Decomposition
Why does APOLLOHOSP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.5% = 7.7% × 1.14 × 2.34
Latest: FY2026
Profitability
Net Margin
7.7%
7.3% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.14x
1.10x →1.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.34x
2.36x →2.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.3% | 1.10 | 2.36 | 18.8% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 1.14 | 2.33 | 13.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.13 | 2.42 | 13.0% |
| FY2025 | ₹0Cr | ₹0Cr | 6.6% | 1.06 | 2.52 | 17.6% |
| FY2026 | ₹0Cr | ₹0Cr | 7.7% | 1.14 | 2.34 | 20.5% |
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.