DuPont Decomposition
Why does COFFEEDAY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.2% = -5.4% × 0.22 × 1.91
Latest: FY2025
Profitability
Net Margin
-5.4%
-22.0% →-5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.09x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
1.75x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.3 pp over 4 years. Driven by net margin improving (-22.0% → -5.4%), asset turnover improving (0.09x → 0.22x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -22.0% | 0.09 | 1.75 | -3.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -41.9% | 0.16 | 1.82 | -12.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -30.3% | 0.20 | 1.79 | -10.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -5.4% | 0.22 | 1.91 | -2.2% |
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.