DuPont Decomposition
Why does CAPLIPOINT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 29.3% × 0.54 × 1.13
Latest: FY2026
Profitability
Net Margin
29.3%
23.6% →29.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.54x
0.73x →0.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.17x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 5 years. Driven by net margin improving (23.6% → 29.3%), asset turnover declining (0.73x → 0.54x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.6% | 0.73 | 1.17 | 20.2% |
| FY2023 | ₹0Cr | ₹0Cr | 25.9% | 0.66 | 1.17 | 20.0% |
| FY2024 | ₹0Cr | ₹0Cr | 27.2% | 0.62 | 1.17 | 19.7% |
| FY2025 | ₹0Cr | ₹0Cr | 27.7% | 0.60 | 1.13 | 18.8% |
| FY2026 | ₹0Cr | ₹0Cr | 29.3% | 0.54 | 1.13 | 17.9% |
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.