DuPont Decomposition
Why does COASTCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.7% = 0.8% × 0.79 × 2.86
Latest: FY2025
Profitability
Net Margin
0.8%
2.9% →0.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
1.19x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.86x
1.94x →2.86x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.9 pp over 4 years. Driven by net margin declining (2.9% → 0.8%), asset turnover declining (1.19x → 0.79x), leverage rising (1.94x → 2.86x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.9% | 1.19 | 1.94 | 6.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.0% | 0.76 | 1.81 | 2.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.1% | 0.66 | 2.43 | 1.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 0.79 | 2.86 | 1.7% |
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.