DuPont Decomposition
Why does CAMPUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.6% = 8.5% × 1.21 × 1.62
Latest: FY2026
Profitability
Net Margin
8.5%
9.1% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.24x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
2.25x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.8 pp over 5 years. Driven by leverage falling (2.25x → 1.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.1% | 1.24 | 2.25 | 25.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.9% | 1.26 | 2.13 | 21.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 1.32 | 1.68 | 13.7% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 1.22 | 1.73 | 16.0% |
| FY2026 | ₹0Cr | ₹0Cr | 8.5% | 1.21 | 1.62 | 16.6% |
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.