DuPont Decomposition
Why does SENORES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.4% = 18.2% × 0.39 × 1.72
Latest: FY2026
Profitability
Net Margin
18.2%
7.0% →18.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.24x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.62x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 5 years. Driven by net margin improving (7.0% → 18.2%), asset turnover improving (0.24x → 0.39x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.0% | 0.24 | 1.62 | 2.7% |
| FY2023 | ₹0Cr | ₹0Cr | 23.9% | 0.27 | 2.88 | 18.5% |
| FY2024 | ₹0Cr | ₹0Cr | 14.9% | 0.34 | 3.04 | 15.4% |
| FY2025 | ₹0Cr | ₹0Cr | 14.7% | 0.32 | 1.56 | 7.5% |
| FY2026 | ₹0Cr | ₹0Cr | 18.2% | 0.39 | 1.72 | 12.4% |
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.