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%
7.1% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.72x
1.25x →1.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.16x
1.62x →2.16x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.2 pp over 4 years. Driven by net margin declining (7.1% → 1.4%), asset turnover improving (1.25x → 1.72x), leverage rising (1.62x → 2.16x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.1% | 1.25 | 1.62 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 4.6% | 1.08 | 2.83 | 14.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.1% | 1.64 | 2.34 | 8.2% |
| 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.