DuPont Decomposition
Why does CRIZAC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.3% = 18.0% × 0.97 × 1.74
Latest: FY2025
Profitability
Net Margin
18.0%
25.7% →18.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
1.53x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.74x
1.61x →1.74x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 33.1 pp over 4 years. Driven by net margin declining (25.7% → 18.0%), asset turnover declining (1.53x → 0.97x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 25.7% | 1.53 | 1.61 | 63.4% |
| FY2023 | ₹0Cr | ₹0Cr | 23.7% | 1.55 | 1.38 | 50.6% |
| FY2024 | ₹0Cr | ₹0Cr | 18.7% | 1.07 | 1.74 | 34.9% |
| FY2025 | ₹0Cr | ₹0Cr | 18.0% | 0.97 | 1.74 | 30.3% |
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.