DuPont Decomposition
Why does CAPACITE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 7.3% × 0.67 × 2.05
Latest: FY2026
Profitability
Net Margin
7.3%
3.6% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.56x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
2.47x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.1 pp over 5 years. Driven by net margin improving (3.6% → 7.3%), asset turnover improving (0.56x → 0.67x), leverage falling (2.47x → 2.05x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.6% | 0.56 | 2.47 | 5.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.3% | 0.68 | 2.43 | 8.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.3% | 0.61 | 2.08 | 7.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 0.67 | 2.04 | 11.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.3% | 0.67 | 2.05 | 10.0% |
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.