DuPont Decomposition
Why does CHALET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.4% = 23.3% × 0.38 × 1.98
Latest: FY2026
Profitability
Net Margin
23.3%
-16.1% →23.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.11x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.98x
3.30x →1.98x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 23.5 pp over 5 years. Driven by net margin improving (-16.1% → 23.3%), asset turnover improving (0.11x → 0.38x), leverage falling (3.30x → 1.98x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -16.1% | 0.11 | 3.30 | -6.1% |
| FY2023 | ₹0Cr | ₹0Cr | 16.3% | 0.23 | 3.20 | 11.9% |
| FY2024 | ₹0Cr | ₹0Cr | 19.6% | 0.25 | 3.11 | 15.0% |
| FY2025 | ₹0Cr | ₹0Cr | 8.3% | 0.24 | 2.32 | 4.7% |
| FY2026 | ₹0Cr | ₹0Cr | 23.3% | 0.38 | 1.98 | 17.4% |
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.