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
7.6% = 4.3% × 0.94 × 1.85
Latest: FY2025
Profitability
Net Margin
4.3%
6.8% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.94x
0.23x →0.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
2.12x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 3 years. Driven by net margin declining (6.8% → 4.3%), asset turnover improving (0.23x → 0.94x), leverage falling (2.12x → 1.85x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.8% | 0.23 | 2.12 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 0.23 | 1.94 | 2.5% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.94 | 1.85 | 7.6% |
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.