DuPont Decomposition
Why does CHEVIOT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.3% = 9.4% × 0.71 × 1.09
Latest: FY2026
Profitability
Net Margin
9.4%
14.1% →9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.93x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.10x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 5 years. Driven by net margin declining (14.1% → 9.4%), asset turnover declining (0.93x → 0.71x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.1% | 0.93 | 1.10 | 14.3% |
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 0.90 | 1.09 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 0.68 | 1.09 | 11.1% |
| FY2025 | ₹0Cr | ₹0Cr | 13.1% | 0.62 | 1.10 | 8.9% |
| FY2026 | ₹0Cr | ₹0Cr | 9.4% | 0.71 | 1.09 | 7.3% |
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.