DuPont Decomposition
Why does CANHLIFE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.9% = 1.1% × 0.24 × 29.93
Latest: FY2026
Profitability
Net Margin
1.1%
1.1% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.24x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
29.93x
29.93x →29.93x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 1.1% | 0.24 | 29.93 | 7.9% |
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.