DuPont Decomposition
Why does CYBERTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 14.8% × 0.77 × 1.23
Latest: FY2025
Profitability
Net Margin
14.8%
16.4% →14.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.86x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.17x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 4 years. Driven by net margin declining (16.4% → 14.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.4% | 0.86 | 1.17 | 16.4% |
| FY2023 | ₹0Cr | ₹0Cr | 12.3% | 0.88 | 1.24 | 13.5% |
| FY2024 | ₹0Cr | ₹0Cr | 10.3% | 0.83 | 1.23 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 14.8% | 0.77 | 1.23 | 14.1% |
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.