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
16.4% = 15.4% × 0.78 × 1.38
Latest: FY2025
Profitability
Net Margin
15.4%
15.9% →15.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.24x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.34x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.3 pp over 3 years. Driven by asset turnover improving (0.24x → 0.78x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.9% | 0.24 | 1.34 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.24 | 1.37 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 15.4% | 0.78 | 1.38 | 16.4% |
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.