DuPont Decomposition
Why does COLPAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
86.3% = 23.9% × 1.99 × 1.81
Latest: FY2025
Profitability
Net Margin
23.9%
23.4% →23.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.99x
0.47x →1.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
1.68x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 67.9 pp over 3 years. Driven by asset turnover improving (0.47x → 1.99x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 23.4% | 0.47 | 1.68 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 25.5% | 0.47 | 1.71 | 20.3% |
| FY2025 | ₹0Cr | ₹0Cr | 23.9% | 1.99 | 1.81 | 86.3% |
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.