DuPont Decomposition
Why does CANTABIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.0% = 10.4% × 0.77 × 2.39
Latest: FY2025
Profitability
Net Margin
10.4%
12.2% →10.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.90x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.39x
2.76x →2.39x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.3 pp over 3 years. Driven by net margin declining (12.2% → 10.4%), asset turnover declining (0.90x → 0.77x), leverage falling (2.76x → 2.39x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.2% | 0.90 | 2.76 | 30.4% |
| FY2024 | ₹0Cr | ₹0Cr | 10.1% | 0.79 | 2.37 | 19.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.4% | 0.77 | 2.39 | 19.0% |
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.