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
9.4% = 2.8% × 1.15 × 2.96
Latest: FY2026
Profitability
Net Margin
2.8%
2.9% →2.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.15x
1.19x →1.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.96x
1.94x →2.96x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 5 years. Driven by leverage rising (1.94x → 2.96x).
Historical Decomposition
Last 5 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 | 0.7% | 0.84 | 2.86 | 1.7% |
| FY2026 | ₹0Cr | ₹0Cr | 2.8% | 1.15 | 2.96 | 9.4% |
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.