DuPont Decomposition
Why does CCAVENUE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.9% = 3.4% × 1.11 × 1.54
Latest: FY2026
Profitability
Net Margin
3.4%
6.7% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.34x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.30x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.9 pp over 5 years. Driven by net margin declining (6.7% → 3.4%), asset turnover improving (0.34x → 1.11x), leverage rising (1.30x → 1.54x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.7% | 0.34 | 1.30 | 2.9% |
| FY2023 | ₹0Cr | ₹0Cr | 7.1% | 0.48 | 1.30 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.0% | 0.61 | 1.52 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.7% | 0.74 | 1.44 | 6.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.4% | 1.11 | 1.54 | 5.9% |
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.