DuPont Decomposition
Why does APOLLOTYRE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 4.8% × 0.97 × 1.75
Latest: FY2026
Profitability
Net Margin
4.8%
3.1% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.76x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.75x
2.31x →1.75x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 5 years. Driven by net margin improving (3.1% → 4.8%), asset turnover improving (0.76x → 0.97x), leverage falling (2.31x → 1.75x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 0.76 | 2.31 | 5.4% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 0.88 | 2.17 | 8.3% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 0.93 | 1.94 | 12.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.96 | 1.85 | 7.6% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 0.97 | 1.75 | 8.2% |
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.