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
7.4% = 4.9% × 0.70 × 2.17
Latest: FY2026
Profitability
Net Margin
4.9%
-78.8% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.10x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.17x
4.14x →2.17x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 40.0 pp over 5 years. Driven by net margin improving (-78.8% → 4.9%), asset turnover improving (0.10x → 0.70x), leverage falling (4.14x → 2.17x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -78.8% | 0.10 | 4.14 | -32.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 0.24 | 4.17 | 1.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.4% | 0.33 | 3.86 | -3.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -28.8% | 0.67 | 2.19 | -42.3% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 0.70 | 2.17 | 7.4% |
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.