DuPont Decomposition
Why does CALSOFT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.9% = 13.2% × 0.20 × 1.12
Latest: FY2025
Profitability
Net Margin
13.2%
41.9% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.20x
0.41x →0.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.59x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 24.7 pp over 4 years. Driven by net margin declining (41.9% → 13.2%), asset turnover declining (0.41x → 0.20x), leverage falling (1.59x → 1.12x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 41.9% | 0.41 | 1.59 | 27.6% |
| FY2023 | ₹0Cr | ₹0Cr | 8.0% | 0.11 | 2.16 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.20 | 1.79 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.20 | 1.12 | 2.9% |
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.