DuPont Decomposition
Why does COMPINFO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-228.3% = -5.3% × 3.97 × 10.75
Latest: FY2023
Profitability
Net Margin
-5.3%
0.6% →-5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.97x
3.56x →3.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
10.75x
4.77x →10.75x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 239.1 pp over 2 years. Driven by net margin declining (0.6% → -5.3%), asset turnover improving (3.56x → 3.97x), leverage rising (4.77x → 10.75x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 3.56 | 4.77 | 10.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.3% | 3.97 | 10.75 | -228.3% |
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.