DuPont Decomposition
Why does SATIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.8% = 2.8% × 0.93 × 1.43
Latest: FY2026
Profitability
Net Margin
2.8%
11.3% →2.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.72x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
2.27x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.7 pp over 5 years. Driven by net margin declining (11.3% → 2.8%), asset turnover improving (0.72x → 0.93x), leverage falling (2.27x → 1.43x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 0.72 | 2.27 | 18.5% |
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 1.37 | 1.87 | 26.2% |
| FY2024 | ₹0Cr | ₹0Cr | 12.3% | 1.23 | 1.51 | 22.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 1.05 | 1.38 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 2.8% | 0.93 | 1.43 | 3.8% |
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.