DuPont Decomposition
Why does SAMMAANCAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-37.6% = -123.6% × 0.08 × 3.91
Latest: FY2026
Profitability
Net Margin
-123.6%
42.9% →-123.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.03x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.91x
4.92x →3.91x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 44.7 pp over 5 years. Driven by net margin declining (42.9% → -123.6%), leverage falling (4.92x → 3.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 42.9% | 0.03 | 4.92 | 7.1% |
| FY2023 | ₹0Cr | ₹0Cr | 36.6% | 0.04 | 4.32 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 18.0% | 0.09 | 3.69 | 6.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -24.7% | 0.10 | 3.22 | -8.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -123.6% | 0.08 | 3.91 | -37.6% |
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.