DuPont Decomposition
Why does SHADOWFAX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.4% = 2.7% × 1.48 × 1.62
Latest: FY2026
Profitability
Net Margin
2.7%
-10.1% →2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.48x
3.20x →1.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
2.51x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 87.3 pp over 4 years. Driven by net margin improving (-10.1% → 2.7%), asset turnover declining (3.20x → 1.48x), leverage falling (2.51x → 1.62x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -10.1% | 3.20 | 2.51 | -80.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.6% | 2.40 | 1.86 | -2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.3% | 1.97 | 1.91 | 1.0% |
| FY2026 | ₹0Cr | ₹0Cr | 2.7% | 1.48 | 1.62 | 6.4% |
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.