DuPont Decomposition
Why does CMSINFO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.5% = 12.2% × 0.77 × 1.33
Latest: FY2026
Profitability
Net Margin
12.2%
14.1% →12.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.86x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.48x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.4 pp over 5 years. Driven by net margin declining (14.1% → 12.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.1% | 0.86 | 1.48 | 17.8% |
| FY2023 | ₹0Cr | ₹0Cr | 15.5% | 0.91 | 1.34 | 19.0% |
| FY2024 | ₹0Cr | ₹0Cr | 15.3% | 0.85 | 1.37 | 17.8% |
| FY2025 | ₹0Cr | ₹0Cr | 15.4% | 0.78 | 1.38 | 16.4% |
| FY2026 | ₹0Cr | ₹0Cr | 12.2% | 0.77 | 1.33 | 12.5% |
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.