DuPont Decomposition
Why does COCHINSHIP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 17.8% × 0.35 × 2.40
Latest: FY2025
Profitability
Net Margin
17.8%
18.0% →17.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.35x
0.37x →0.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.40x
1.92x →2.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 4 years. Driven by leverage rising (1.92x → 2.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.0% | 0.37 | 1.92 | 12.8% |
| FY2023 | ₹0Cr | ₹0Cr | 13.1% | 0.23 | 2.26 | 6.9% |
| FY2024 | ₹0Cr | ₹0Cr | 20.9% | 0.31 | 2.41 | 15.7% |
| FY2025 | ₹0Cr | ₹0Cr | 17.8% | 0.35 | 2.40 | 14.8% |
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.