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
26.3% = 7.9% × 1.46 × 2.29
Latest: FY2026
Profitability
Net Margin
7.9%
1.2% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.46x
2.21x →1.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.29x
13.92x →2.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.9 pp over 5 years. Driven by net margin improving (1.2% → 7.9%), asset turnover declining (2.21x → 1.46x), leverage falling (13.92x → 2.29x).
Historical Decomposition
Last 5 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 | 10.1% | 1.32 | 4.84 | 64.4% |
| FY2026 | ₹0Cr | ₹0Cr | 7.9% | 1.46 | 2.29 | 26.3% |
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.