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
20.0% = 11.2% × 0.74 × 2.41
Latest: FY2026
Profitability
Net Margin
11.2%
9.9% →11.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.77x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.41x
3.10x →2.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.7 pp over 5 years. Driven by net margin improving (9.9% → 11.2%), leverage falling (3.10x → 2.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.9% | 0.77 | 3.10 | 23.8% |
| FY2023 | ₹0Cr | ₹0Cr | 12.2% | 0.90 | 2.77 | 30.4% |
| FY2024 | ₹0Cr | ₹0Cr | 10.1% | 0.79 | 2.37 | 19.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.4% | 0.77 | 2.39 | 19.0% |
| FY2026 | ₹0Cr | ₹0Cr | 11.2% | 0.74 | 2.41 | 20.0% |
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.