DuPont Decomposition
Why does SHAILY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.0% = 11.9% × 0.84 × 1.70
Latest: FY2025
Profitability
Net Margin
11.9%
7.4% →11.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.19x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.73x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.5 pp over 3 years. Driven by net margin improving (7.4% → 11.9%), asset turnover improving (0.19x → 0.84x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.4% | 0.19 | 1.73 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 11.3% | 0.22 | 1.70 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 11.9% | 0.84 | 1.70 | 17.0% |
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.