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
9.0% = 28.6% × 0.26 × 1.21
Latest: FY2026
Profitability
Net Margin
28.6%
-42.2% →28.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.14x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.15x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.7 pp over 5 years. Driven by net margin improving (-42.2% → 28.6%), asset turnover improving (0.14x → 0.26x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -42.2% | 0.14 | 1.15 | -6.7% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 0.16 | 1.15 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 0.20 | 1.21 | 0.7% |
| FY2025 | ₹0Cr | ₹0Cr | 21.0% | 0.24 | 1.22 | 6.1% |
| FY2026 | ₹0Cr | ₹0Cr | 28.6% | 0.26 | 1.21 | 9.0% |
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.