DuPont Decomposition
Why does CAPILLARY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.1% = 7.1% × 0.56 × 1.27
Latest: FY2026
Profitability
Net Margin
7.1%
-34.4% →7.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.55x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
2.50x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 52.1 pp over 4 years. Driven by net margin improving (-34.4% → 7.1%), leverage falling (2.50x → 1.27x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -34.4% | 0.55 | 2.50 | -47.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -11.3% | 0.60 | 1.62 | -11.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 0.71 | 1.48 | 2.3% |
| FY2026 | ₹0Cr | ₹0Cr | 7.1% | 0.56 | 1.27 | 5.1% |
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.