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
-2.0% = -5.4% × 0.22 × 1.68
Latest: FY2025
Profitability
Net Margin
-5.4%
-41.9% →-5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.16x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.82x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.1 pp over 3 years. Driven by net margin improving (-41.9% → -5.4%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -41.9% | 0.16 | 1.82 | -12.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -6135.6% | 0.01 | 1.24 | -64.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -5.4% | 0.22 | 1.68 | -2.0% |
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.