DuPont Decomposition
Why does CROWN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.7% = 54.2% × 0.20 × 2.90
Latest: FY2025
Profitability
Net Margin
54.2%
-8.0% →54.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.20x
0.83x →0.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.90x
1.38x →2.90x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 39.9 pp over 4 years. Driven by net margin improving (-8.0% → 54.2%), asset turnover declining (0.83x → 0.20x), leverage rising (1.38x → 2.90x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -8.0% | 0.83 | 1.38 | -9.2% |
| FY2023 | ₹0Cr | ₹0Cr | 20.2% | 0.49 | 1.87 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 19.6% | 0.26 | 3.01 | 15.3% |
| FY2025 | ₹0Cr | ₹0Cr | 54.2% | 0.20 | 2.90 | 30.7% |
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.