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
1.0% = 0.3% × 1.97 × 1.91
Latest: FY2025
Profitability
Net Margin
0.3%
-10.1% →0.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.97x
3.20x →1.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
2.51x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 81.9 pp over 3 years. Driven by net margin improving (-10.1% → 0.3%), asset turnover declining (3.20x → 1.97x), leverage falling (2.51x → 1.91x).
Historical Decomposition
Last 3 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% |
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.