DuPont Decomposition
Why does COALINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
35.4% = 28.4% × 0.48 × 2.60
Latest: FY2025
Profitability
Net Margin
28.4%
14.5% →28.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.18x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.60x
3.69x →2.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.7 pp over 3 years. Driven by net margin improving (14.5% → 28.4%), asset turnover improving (0.18x → 0.48x), leverage falling (3.69x → 2.60x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.5% | 0.18 | 3.69 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 23.1% | 0.16 | 2.87 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 28.4% | 0.48 | 2.60 | 35.4% |
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.