DuPont Decomposition
Why does SAATVIKGL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
63.4% = 9.9% × 1.32 × 4.84
Latest: FY2025
Profitability
Net Margin
9.9%
1.2% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
2.21x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.84x
13.92x →4.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.2 pp over 4 years. Driven by net margin improving (1.2% → 9.9%), asset turnover declining (2.21x → 1.32x), leverage falling (13.92x → 4.84x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.2% | 2.21 | 13.92 | 38.2% |
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 2.31 | 12.97 | 23.4% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 1.58 | 5.70 | 83.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 1.32 | 4.84 | 63.4% |
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.