DuPont Decomposition
Why does CEIGALL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.6% = 7.8% × 0.73 × 2.58
Latest: FY2026
Profitability
Net Margin
7.8%
11.3% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
1.16x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.58x
2.22x →2.58x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.6 pp over 5 years. Driven by net margin declining (11.3% → 7.8%), asset turnover declining (1.16x → 0.73x), leverage rising (2.22x → 2.58x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 1.16 | 2.22 | 29.2% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 1.10 | 3.08 | 28.2% |
| FY2024 | ₹0Cr | ₹0Cr | 10.8% | 1.10 | 2.92 | 34.5% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 0.81 | 2.32 | 16.0% |
| FY2026 | ₹0Cr | ₹0Cr | 7.8% | 0.73 | 2.58 | 14.6% |
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.