DuPont Decomposition
Why does CCL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.6% = 8.7% × 1.03 × 1.85
Latest: FY2026
Profitability
Net Margin
8.7%
14.0% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.03x
0.71x →1.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.66x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~17%. Driven by net margin declining (14.0% → 8.7%), asset turnover improving (0.71x → 1.03x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.0% | 0.71 | 1.66 | 16.3% |
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.80 | 1.73 | 19.0% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 0.75 | 2.11 | 14.9% |
| FY2025 | ₹0Cr | ₹0Cr | 10.0% | 0.73 | 2.16 | 15.8% |
| FY2026 | ₹0Cr | ₹0Cr | 8.7% | 1.03 | 1.85 | 16.6% |
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.