DuPont Decomposition
Why does CHAMBLFERT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.9% = 9.9% × 1.46 × 1.31
Latest: FY2025
Profitability
Net Margin
9.9%
2.6% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.46x
0.28x →1.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.81x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.6 pp over 3 years. Driven by net margin improving (2.6% → 9.9%), asset turnover improving (0.28x → 1.46x), leverage falling (1.81x → 1.31x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 0.28 | 1.81 | 1.3% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 0.23 | 1.59 | 1.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 1.46 | 1.31 | 18.9% |
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.