DuPont Decomposition
Why does KOKUYOCMLN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 3.1% × 1.72 × 1.45
Latest: FY2026
Profitability
Net Margin
3.1%
-0.9% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.72x
1.30x →1.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.62x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.7 pp over 5 years. Driven by net margin improving (-0.9% → 3.1%), asset turnover improving (1.30x → 1.72x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.9% | 1.30 | 1.62 | -2.0% |
| FY2023 | ₹0Cr | ₹0Cr | 3.2% | 1.75 | 1.68 | 9.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 1.65 | 1.66 | 14.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 1.67 | 1.50 | 1.9% |
| FY2026 | ₹0Cr | ₹0Cr | 3.1% | 1.72 | 1.45 | 7.7% |
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.