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
15.6% = 6.2% × 1.28 × 1.95
Latest: FY2026
Profitability
Net Margin
6.2%
12.4% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.28x
1.09x →1.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.95x
1.77x →1.95x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.5 pp over 5 years. Driven by net margin declining (12.4% → 6.2%), asset turnover improving (1.09x → 1.28x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.4% | 1.09 | 1.77 | 24.0% |
| FY2023 | ₹0Cr | ₹0Cr | 13.3% | 1.06 | 1.80 | 25.5% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.87 | 1.68 | 17.4% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 1.27 | 1.71 | 18.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.2% | 1.28 | 1.95 | 15.6% |
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.