DuPont Decomposition
Why does SANOFI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
43.6% = 17.9% × 1.45 × 1.67
Latest: FY2026
Profitability
Net Margin
17.9%
22.8% →17.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.45x
1.32x →1.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.67x
1.62x →1.67x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.0 pp over 4 years. Driven by net margin declining (22.8% → 17.9%), asset turnover improving (1.32x → 1.45x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.8% | 1.32 | 1.62 | 48.6% |
| FY2024 | ₹0Cr | ₹0Cr | 30.4% | 1.16 | 1.69 | 59.4% |
| FY2025 | ₹0Cr | ₹0Cr | 20.8% | 1.23 | 1.87 | 48.0% |
| FY2026 | ₹0Cr | ₹0Cr | 17.9% | 1.45 | 1.67 | 43.6% |
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.