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
8.9% = 13.3% × 0.61 × 1.10
Latest: FY2025
Profitability
Net Margin
13.3%
14.1% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.93x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.10x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.5 pp over 4 years. Driven by asset turnover declining (0.93x → 0.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.1% | 0.93 | 1.10 | 14.3% |
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 0.22 | 1.09 | 2.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.2% | 0.18 | 1.09 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 13.3% | 0.61 | 1.10 | 8.9% |
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.