DuPont Decomposition
Why does CEREBRAINT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-28.7% = -132.7% × 0.14 × 1.57
Latest: FY2025
Profitability
Net Margin
-132.7%
11.9% →-132.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.14x
0.54x →0.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
1.65x →1.57x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 39.3 pp over 4 years. Driven by net margin declining (11.9% → -132.7%), asset turnover declining (0.54x → 0.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.9% | 0.54 | 1.65 | 10.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 0.22 | 1.53 | 1.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -93.0% | 0.15 | 1.66 | -22.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -132.7% | 0.14 | 1.57 | -28.7% |
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.