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
9.2% = 3.6% × 1.20 × 2.13
Latest: FY2025
Profitability
Net Margin
3.6%
3.7% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
1.16x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
2.20x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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 | 3.6% | 1.20 | 2.13 | 9.2% |
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.