DuPont Decomposition
Why does SANSERA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.5% = 9.3% × 0.78 × 1.46
Latest: FY2026
Profitability
Net Margin
9.3%
7.0% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.84x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
2.17x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.2 pp over 5 years. Driven by net margin improving (7.0% → 9.3%), leverage falling (2.17x → 1.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.0% | 0.84 | 2.17 | 12.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.7% | 0.88 | 2.11 | 12.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.0% | 0.95 | 2.07 | 13.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 0.81 | 1.36 | 7.8% |
| FY2026 | ₹0Cr | ₹0Cr | 9.3% | 0.78 | 1.46 | 10.5% |
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.