DuPont Decomposition
Why does CARTRADE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.8% = 21.0% × 0.24 × 1.16
Latest: FY2025
Profitability
Net Margin
21.0%
11.1% →21.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.16x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.15x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.8 pp over 3 years. Driven by net margin improving (11.1% → 21.0%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.1% | 0.16 | 1.15 | 2.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.1% | 0.20 | 1.21 | 1.0% |
| FY2025 | ₹0Cr | ₹0Cr | 21.0% | 0.24 | 1.16 | 5.8% |
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.