DuPont Decomposition
Why does SALZERELEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.9% = 3.0% × 1.28 × 2.31
Latest: FY2026
Profitability
Net Margin
3.0%
2.8% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.28x
1.06x →1.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.31x
2.13x →2.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.5 pp over 5 years. Driven by asset turnover improving (1.06x → 1.28x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 1.06 | 2.13 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 1.16 | 2.20 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.9% | 1.17 | 2.10 | 9.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.3% | 1.20 | 2.17 | 8.4% |
| FY2026 | ₹0Cr | ₹0Cr | 3.0% | 1.28 | 2.31 | 8.9% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.