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
-8.3% = -25.5% × 0.10 × 3.22
Latest: FY2025
Profitability
Net Margin
-25.5%
54.4% →-25.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.03x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.22x
4.32x →3.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.8 pp over 3 years. Driven by net margin declining (54.4% → -25.5%), leverage falling (4.32x → 3.22x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 54.4% | 0.03 | 4.32 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 18.0% | 0.10 | 3.64 | 6.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -25.5% | 0.10 | 3.22 | -8.3% |
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.