DuPont Decomposition
Why does SHALBY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 0.6% × 0.63 × 1.72
Latest: FY2025
Profitability
Net Margin
0.6%
7.7% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.63x
0.59x →0.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.36x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.5 pp over 4 years. Driven by net margin declining (7.7% → 0.6%), leverage rising (1.36x → 1.72x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.7% | 0.59 | 1.36 | 6.2% |
| FY2023 | ₹0Cr | ₹0Cr | 8.5% | 0.62 | 1.38 | 7.3% |
| FY2024 | ₹0Cr | ₹0Cr | 9.1% | 0.58 | 1.61 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 0.63 | 1.72 | 0.6% |
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.