DuPont Decomposition
Why does SBFC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 27.2% × 0.15 × 2.98
Latest: FY2026
Profitability
Net Margin
27.2%
15.8% →27.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.09x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.98x
3.51x →2.98x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.1 pp over 5 years. Driven by net margin improving (15.8% → 27.2%), leverage falling (3.51x → 2.98x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.8% | 0.09 | 3.51 | 5.0% |
| FY2023 | ₹0Cr | ₹0Cr | 23.5% | 0.11 | 3.33 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 25.3% | 0.13 | 2.54 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 27.3% | 0.15 | 2.69 | 10.8% |
| FY2026 | ₹0Cr | ₹0Cr | 27.2% | 0.15 | 2.98 | 12.1% |
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.