DuPont Decomposition
Why does CHOICEIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.0% = 19.4% × 0.31 × 2.13
Latest: FY2026
Profitability
Net Margin
19.4%
15.4% →19.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.35x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
2.32x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~13%. Driven by net margin improving (15.4% → 19.4%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.4% | 0.35 | 2.32 | 12.6% |
| FY2024 | ₹0Cr | ₹0Cr | 17.4% | 0.42 | 2.86 | 20.7% |
| FY2025 | ₹0Cr | ₹0Cr | 17.2% | 0.35 | 2.55 | 15.2% |
| FY2026 | ₹0Cr | ₹0Cr | 19.4% | 0.31 | 2.13 | 13.0% |
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.