DuPont Decomposition
Why does SCHAEFFLER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.0% = 12.1% × 1.16 × 1.36
Latest: FY2026
Profitability
Net Margin
12.1%
12.9% →12.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
0.31x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.34x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.6 pp over 4 years. Driven by asset turnover improving (0.31x → 1.16x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.9% | 0.31 | 1.34 | 5.4% |
| FY2024 | ₹0Cr | ₹0Cr | 11.2% | 0.30 | 1.30 | 4.4% |
| FY2025 | ₹0Cr | ₹0Cr | 11.1% | 0.31 | 1.29 | 4.5% |
| FY2026 | ₹0Cr | ₹0Cr | 12.1% | 1.16 | 1.36 | 19.0% |
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.