DuPont Decomposition
Why does CORDSCABLE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.0% = 1.9% × 1.89 × 2.30
Latest: FY2025
Profitability
Net Margin
1.9%
1.4% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.89x
1.56x →1.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.30x
2.11x →2.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 3 years. Driven by asset turnover improving (1.56x → 1.89x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 1.56 | 2.11 | 4.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 1.74 | 2.14 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 1.89 | 2.30 | 8.0% |
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.