DuPont Decomposition
Why does CEMPRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.9% = 5.9% × 1.42 × 2.95
Latest: FY2026
Profitability
Net Margin
5.9%
1.8% →5.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
1.05x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.95x
3.20x →2.95x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.8 pp over 5 years. Driven by net margin improving (1.8% → 5.9%), asset turnover improving (1.05x → 1.42x), leverage falling (3.20x → 2.95x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 1.05 | 3.20 | 6.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 1.01 | 4.05 | 10.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.5% | 1.30 | 3.96 | 18.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.0% | 1.42 | 3.55 | 20.3% |
| FY2026 | ₹0Cr | ₹0Cr | 5.9% | 1.42 | 2.95 | 24.9% |
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.