DuPont Decomposition
Why does CPEDU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
32.7% = 37.6% × 0.75 × 1.16
Latest: FY2025
Profitability
Net Margin
37.6%
36.9% →37.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.26x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.31x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 20.1 pp over 3 years. Driven by asset turnover improving (0.26x → 0.75x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 36.9% | 0.26 | 1.31 | 12.6% |
| FY2024 | ₹0Cr | ₹0Cr | 33.4% | 1.02 | 1.19 | 40.6% |
| FY2025 | ₹0Cr | ₹0Cr | 37.6% | 0.75 | 1.16 | 32.7% |
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.