DuPont Decomposition
Why does APTUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.4% = 59.7% × 0.11 × 2.60
Latest: FY2025
Profitability
Net Margin
59.7%
45.3% →59.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.04x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.60x
2.15x →2.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.3 pp over 3 years. Driven by net margin improving (45.3% → 59.7%), leverage rising (2.15x → 2.60x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 45.3% | 0.04 | 2.15 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 43.8% | 0.04 | 2.39 | 4.3% |
| FY2025 | ₹0Cr | ₹0Cr | 59.7% | 0.11 | 2.60 | 17.4% |
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.