DuPont Decomposition

Why does SABEVENTS earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

-137.9% = -75.5% × 0.33 × 5.46

Latest: FY2022

Profitability

Net Margin

-75.5%

-75.5% →-75.5%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.33x

0.33x →0.33x

Revenue per ₹ of assets

Leverage

Equity Multiplier

5.46x

5.46x →5.46x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2022₹0Cr₹-0Cr-75.5%0.335.46-137.9%

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)

See DCF fair value for SABEVENTS

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.