DuPont Decomposition
Why does CENTENKA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.7% = 3.3% × 1.12 × 1.26
Latest: FY2025
Profitability
Net Margin
3.3%
4.4% →3.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
1.27x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.23x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.1 pp over 3 years. Driven by net margin declining (4.4% → 3.3%), asset turnover declining (1.27x → 1.12x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.4% | 1.27 | 1.23 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 1.03 | 1.23 | 3.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.3% | 1.12 | 1.26 | 4.7% |
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.