DuPont Decomposition
Why does COMSYN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 4.9% × 1.13 × 2.05
Latest: FY2025
Profitability
Net Margin
4.9%
5.7% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
1.46x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
2.10x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.9 pp over 4 years. Driven by asset turnover declining (1.46x → 1.13x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.7% | 1.46 | 2.10 | 17.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.8% | 1.28 | 1.88 | 6.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 1.06 | 2.12 | 6.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 1.13 | 2.05 | 11.4% |
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.