DuPont Decomposition
Why does CRISIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.3% = 21.0% × 0.79 × 1.53
Latest: FY2026
Profitability
Net Margin
21.0%
20.4% →21.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
1.72x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.51x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 27.5 pp over 4 years. Driven by asset turnover declining (1.72x → 0.79x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.4% | 1.72 | 1.51 | 52.7% |
| FY2024 | ₹0Cr | ₹0Cr | 21.0% | 0.95 | 1.51 | 30.1% |
| FY2025 | ₹0Cr | ₹0Cr | 21.0% | 0.83 | 1.54 | 26.7% |
| FY2026 | ₹0Cr | ₹0Cr | 21.0% | 0.79 | 1.53 | 25.3% |
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.