DuPont Decomposition
Why does SAKUMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.1% = 0.7% × 2.51 × 1.29
Latest: FY2025
Profitability
Net Margin
0.7%
0.9% →0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.51x
5.54x →2.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.38x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.8 pp over 3 years. Driven by asset turnover declining (5.54x → 2.51x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.9% | 5.54 | 1.38 | 6.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 3.14 | 1.40 | 5.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.7% | 2.51 | 1.29 | 2.1% |
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.