DuPont Decomposition
Why does COROMANDEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.4% = 13.0% × 0.84 × 1.69
Latest: FY2025
Profitability
Net Margin
13.0%
6.8% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
2.08x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
1.80x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.1 pp over 3 years. Driven by net margin improving (6.8% → 13.0%), asset turnover declining (2.08x → 0.84x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.8% | 2.08 | 1.80 | 25.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 1.39 | 1.68 | 17.4% |
| FY2025 | ₹0Cr | ₹0Cr | 13.0% | 0.84 | 1.69 | 18.4% |
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.