DuPont Decomposition
Why does CHEMBOND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 8.8% × 0.99 × 1.29
Latest: FY2025
Profitability
Net Margin
8.8%
7.8% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
0.20x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.05x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 3 years. Driven by net margin improving (7.8% → 8.8%), asset turnover improving (0.20x → 0.99x), leverage rising (1.05x → 1.29x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 0.20 | 1.05 | 1.6% |
| FY2024 | ₹0Cr | ₹0Cr | 13.8% | 0.20 | 1.05 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 0.99 | 1.29 | 11.3% |
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.