DuPont Decomposition
Why does CAPTRUST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.3% = 1.2% × 0.46 × 2.37
Latest: FY2025
Profitability
Net Margin
1.2%
-12.7% →1.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.24x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.37x
2.95x →2.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.3 pp over 4 years. Driven by net margin improving (-12.7% → 1.2%), asset turnover improving (0.24x → 0.46x), leverage falling (2.95x → 2.37x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -12.7% | 0.24 | 2.95 | -9.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -70.5% | 0.34 | 2.52 | -61.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 0.43 | 2.34 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 1.2% | 0.46 | 2.37 | 1.3% |
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.