DuPont Decomposition
Why does CUBEXTUB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.8% = 2.5% × 1.91 × 1.85
Latest: FY2025
Profitability
Net Margin
2.5%
1.8% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.91x
1.40x →1.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.54x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.9 pp over 4 years. Driven by asset turnover improving (1.40x → 1.91x), leverage rising (1.54x → 1.85x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 1.40 | 1.54 | 3.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 1.96 | 1.50 | 4.1% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 2.11 | 1.51 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.91 | 1.85 | 8.8% |
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.