DuPont Decomposition
Why does FORTIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.4% = 10.0% × 0.56 × 1.49
Latest: FY2025
Profitability
Net Margin
10.0%
0.8% →10.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.03x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.16x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.4 pp over 3 years. Driven by net margin improving (0.8% → 10.0%), asset turnover improving (0.03x → 0.56x), leverage rising (1.16x → 1.49x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 0.03 | 1.16 | 0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 11.4% | 0.13 | 1.73 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 10.0% | 0.56 | 1.49 | 8.4% |
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.