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
18.6% = 27.7% × 0.60 × 1.11
Latest: FY2025
Profitability
Net Margin
27.7%
25.9% →27.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.66x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.17x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.4 pp over 3 years. Driven by net margin improving (25.9% → 27.7%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 25.9% | 0.66 | 1.17 | 20.0% |
| FY2024 | ₹0Cr | ₹0Cr | 27.2% | 0.62 | 1.16 | 19.7% |
| FY2025 | ₹0Cr | ₹0Cr | 27.7% | 0.60 | 1.11 | 18.6% |
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.