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
6.7% = 5.9% × 0.92 × 1.24
Latest: FY2026
Profitability
Net Margin
5.9%
8.8% →5.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
1.37x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.22x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.0 pp over 5 years. Driven by net margin declining (8.8% → 5.9%), asset turnover declining (1.37x → 0.92x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.8% | 1.37 | 1.22 | 14.7% |
| 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% |
| FY2026 | ₹0Cr | ₹0Cr | 5.9% | 0.92 | 1.24 | 6.7% |
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.