DuPont Decomposition
Why does CYIENTDLM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.2% = 5.8% × 0.77 × 1.62
Latest: FY2026
Profitability
Net Margin
5.8%
5.5% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.93x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
10.08x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 44.4 pp over 5 years. Driven by asset turnover declining (0.93x → 0.77x), leverage falling (10.08x → 1.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 0.93 | 10.08 | 51.6% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 0.75 | 5.58 | 16.0% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 0.74 | 1.76 | 6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 0.90 | 1.78 | 7.2% |
| FY2026 | ₹0Cr | ₹0Cr | 5.8% | 0.77 | 1.62 | 7.2% |
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.