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
10.5% = 11.4% × 0.57 × 1.61
Latest: FY2026
Profitability
Net Margin
11.4%
9.8% →11.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.47x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
1.92x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 5 years. Driven by net margin improving (9.8% → 11.4%), leverage falling (1.92x → 1.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.8% | 0.47 | 1.92 | 9.0% |
| FY2023 | ₹0Cr | ₹0Cr | 9.5% | 0.50 | 1.72 | 8.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 0.51 | 1.73 | 7.8% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 0.57 | 1.54 | 8.7% |
| FY2026 | ₹0Cr | ₹0Cr | 11.4% | 0.57 | 1.61 | 10.5% |
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.