DuPont Decomposition
Why does SCHNEIDER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
47.7% = 10.2% × 1.36 × 3.44
Latest: FY2025
Profitability
Net Margin
10.2%
7.0% →10.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.36x
1.30x →1.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.44x
8.97x →3.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 34.1 pp over 3 years. Driven by net margin improving (7.0% → 10.2%), leverage falling (8.97x → 3.44x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.0% | 1.30 | 8.97 | 81.8% |
| FY2024 | ₹0Cr | ₹0Cr | 7.8% | 1.40 | 5.34 | 58.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.2% | 1.36 | 3.44 | 47.7% |
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.