DuPont Decomposition
Why does COALINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
26.1% = 18.5% × 0.59 × 2.40
Latest: FY2026
Profitability
Net Margin
18.5%
15.8% →18.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.57x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.40x
4.48x →2.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.2 pp over 5 years. Driven by net margin improving (15.8% → 18.5%), leverage falling (4.48x → 2.40x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.8% | 0.57 | 4.48 | 40.3% |
| FY2023 | ₹0Cr | ₹0Cr | 24.9% | 0.57 | 3.66 | 52.2% |
| FY2024 | ₹0Cr | ₹0Cr | 29.4% | 0.53 | 2.87 | 45.2% |
| FY2025 | ₹0Cr | ₹0Cr | 21.0% | 0.65 | 2.63 | 35.8% |
| FY2026 | ₹0Cr | ₹0Cr | 18.5% | 0.59 | 2.40 | 26.1% |
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.