DuPont Decomposition
Why does SAMBHV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.8% = 6.4% × 1.36 × 2.15
Latest: FY2024
Profitability
Net Margin
6.4%
8.8% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.36x
1.79x →1.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.15x
3.07x →2.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 29.5 pp over 3 years. Driven by net margin declining (8.8% → 6.4%), asset turnover declining (1.79x → 1.36x), leverage falling (3.07x → 2.15x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.8% | 1.79 | 3.07 | 48.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 1.70 | 2.62 | 28.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.4% | 1.36 | 2.15 | 18.8% |
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.