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
7.9% = 115.3% × 0.06 × 1.06
Latest: FY2025
Profitability
Net Margin
115.3%
103.9% →115.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.11x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.06x
1.07x →1.06x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.3 pp over 4 years. Driven by net margin improving (103.9% → 115.3%).
Historical Decomposition
Last 4 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 | 115.3% | 0.06 | 1.06 | 7.9% |
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.