DuPont Decomposition
Why does SGFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 38.4% × 0.08 × 2.86
Latest: FY2026
Profitability
Net Margin
38.4%
2091.7% →38.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.00x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.86x
1.02x →2.86x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%. Driven by net margin declining (2091.7% → 38.4%), leverage rising (1.02x → 2.86x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2091.7% | 0.00 | 1.02 | 8.8% |
| FY2023 | ₹0Cr | ₹0Cr | 46.1% | 0.04 | 1.88 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 42.3% | 0.10 | 2.21 | 9.8% |
| FY2025 | ₹0Cr | ₹0Cr | 47.7% | 0.07 | 2.38 | 8.0% |
| FY2026 | ₹0Cr | ₹0Cr | 38.4% | 0.08 | 2.86 | 8.7% |
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.