DuPont Decomposition
Why does CELEBRITY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-88.9% = -11.5% × 1.08 × 7.15
Latest: FY2025
Profitability
Net Margin
-11.5%
2.7% →-11.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.08x
1.79x →1.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
7.15x
12.08x →7.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 147.5 pp over 4 years. Driven by net margin declining (2.7% → -11.5%), asset turnover declining (1.79x → 1.08x), leverage falling (12.08x → 7.15x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.7% | 1.79 | 12.08 | 58.6% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 1.97 | 6.77 | 23.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 2.39 | 4.20 | 5.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -11.5% | 1.08 | 7.15 | -88.9% |
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.