DuPont Decomposition
Why does SANOFICONR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
62.5% = 27.3% × 1.61 × 1.42
Latest: FY2026
Profitability
Net Margin
27.3%
30.3% →27.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.61x
1.58x →1.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
1.66x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.9 pp over 3 years. Driven by net margin declining (30.3% → 27.3%), leverage falling (1.66x → 1.42x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹0Cr | 30.3% | 1.58 | 1.66 | 79.4% |
| FY2025 | ₹0Cr | ₹0Cr | 25.9% | 0.40 | 1.58 | 16.2% |
| FY2026 | ₹0Cr | ₹0Cr | 27.3% | 1.61 | 1.42 | 62.5% |
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.