DuPont Decomposition
Why does CONCORDBIO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.5% = 31.5% × 0.58 × 1.12
Latest: FY2025
Profitability
Net Margin
31.5%
24.7% →31.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.54x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.19x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.6 pp over 4 years. Driven by net margin improving (24.7% → 31.5%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 24.7% | 0.54 | 1.19 | 15.9% |
| FY2023 | ₹0Cr | ₹0Cr | 28.9% | 0.55 | 1.17 | 18.6% |
| FY2024 | ₹0Cr | ₹0Cr | 29.8% | 0.19 | 1.11 | 6.2% |
| FY2025 | ₹0Cr | ₹0Cr | 31.5% | 0.58 | 1.12 | 20.5% |
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.