DuPont Decomposition
Why does CORALFINAC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.1% = 96.0% × 0.07 × 1.08
Latest: FY2026
Profitability
Net Margin
96.0%
103.9% →96.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.11x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.07x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.1 pp over 5 years. Driven by net margin declining (103.9% → 96.0%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 103.9% | 0.11 | 1.07 | 12.2% |
| FY2023 | ₹0Cr | ₹0Cr | 64.3% | 0.17 | 1.10 | 12.3% |
| FY2024 | ₹0Cr | ₹0Cr | 102.2% | 0.11 | 1.05 | 11.3% |
| FY2025 | ₹0Cr | ₹0Cr | 82.7% | 0.09 | 1.06 | 7.9% |
| FY2026 | ₹0Cr | ₹0Cr | 96.0% | 0.07 | 1.08 | 7.1% |
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.