DuPont Decomposition
Why does CEINSYS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.8% = 20.2% × 0.71 × 1.38
Latest: FY2026
Profitability
Net Margin
20.2%
4.5% →20.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.68x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.83x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.2 pp over 5 years. Driven by net margin improving (4.5% → 20.2%), leverage falling (1.83x → 1.38x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.5% | 0.68 | 1.83 | 5.7% |
| FY2023 | ₹0Cr | ₹0Cr | 14.1% | 0.70 | 1.58 | 15.6% |
| FY2024 | ₹0Cr | ₹0Cr | 13.8% | 0.78 | 1.39 | 14.9% |
| FY2025 | ₹0Cr | ₹0Cr | 15.1% | 0.72 | 1.40 | 15.3% |
| FY2026 | ₹0Cr | ₹0Cr | 20.2% | 0.71 | 1.38 | 19.8% |
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.