DuPont Decomposition
Why does CINELINE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-12.3% = -8.4% × 0.67 × 2.19
Latest: FY2025
Profitability
Net Margin
-8.4%
1.2% →-8.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.24x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.19x
4.17x →2.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.6 pp over 3 years. Driven by net margin declining (1.2% → -8.4%), asset turnover improving (0.24x → 0.67x), leverage falling (4.17x → 2.19x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 0.24 | 4.17 | 1.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.4% | 0.33 | 3.86 | -4.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.4% | 0.67 | 2.19 | -12.3% |
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.