DuPont Decomposition
Why does SASKEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 9.1% × 0.57 × 1.19
Latest: FY2025
Profitability
Net Margin
9.1%
39.4% →9.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.11x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.13x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 3 years. Driven by net margin declining (39.4% → 9.1%), asset turnover improving (0.11x → 0.57x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 39.4% | 0.11 | 1.13 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 19.3% | 0.10 | 1.14 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 9.1% | 0.57 | 1.19 | 6.3% |
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.