DuPont Decomposition
Why does APOLSINHOT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 1.4% × 1.72 × 2.16
Latest: FY2025
Profitability
Net Margin
1.4%
1.5% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.72x
0.40x →1.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.16x
2.83x →2.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.6 pp over 3 years. Driven by asset turnover improving (0.40x → 1.72x), leverage falling (2.83x → 2.16x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.5% | 0.40 | 2.83 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 0.43 | 2.34 | 1.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 1.72 | 2.16 | 5.3% |
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.