DuPont Decomposition
Why does CARERATING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.4% = 36.2% × 0.43 × 1.18
Latest: FY2026
Profitability
Net Margin
36.2%
30.4% →36.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.34x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.12x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.8 pp over 5 years. Driven by net margin improving (30.4% → 36.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 30.4% | 0.34 | 1.12 | 11.6% |
| FY2023 | ₹0Cr | ₹0Cr | 29.9% | 0.36 | 1.14 | 12.4% |
| FY2024 | ₹0Cr | ₹0Cr | 30.3% | 0.39 | 1.17 | 14.0% |
| FY2025 | ₹0Cr | ₹0Cr | 34.1% | 0.42 | 1.19 | 17.0% |
| FY2026 | ₹0Cr | ₹0Cr | 36.2% | 0.43 | 1.18 | 18.4% |
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.