DuPont Decomposition
Why does CYBERMEDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
35.0% = 1.4% × 2.37 × 10.64
Latest: FY2024
Profitability
Net Margin
1.4%
5.2% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.37x
2.16x →2.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
10.64x
29.17x →10.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 289.5 pp over 2 years. Driven by net margin declining (5.2% → 1.4%), asset turnover improving (2.16x → 2.37x), leverage falling (29.17x → 10.64x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.2% | 2.16 | 29.17 | 324.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 2.37 | 10.64 | 35.0% |
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.