DuPont Decomposition
Why does CARBORUNIV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.0% = 6.1% × 1.04 × 1.26
Latest: FY2025
Profitability
Net Margin
6.1%
12.4% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.31x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.39x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 3 years. Driven by net margin declining (12.4% → 6.1%), asset turnover improving (0.31x → 1.04x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.4% | 0.31 | 1.39 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.29 | 1.33 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 1.04 | 1.26 | 8.0% |
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.