DuPont Decomposition
Why does SAILIFE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.0% = 10.3% × 0.53 × 1.48
Latest: FY2025
Profitability
Net Margin
10.3%
0.7% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.40x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
2.46x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.3 pp over 4 years. Driven by net margin improving (0.7% → 10.2%), asset turnover improving (0.40x → 0.53x), leverage falling (2.46x → 1.48x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.7% | 0.40 | 2.46 | 0.7% |
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 0.55 | 2.46 | 1.1% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 0.64 | 2.33 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 10.3% | 0.53 | 1.48 | 8.0% |
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.