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 × 1.71
Latest: FY2025
Profitability
Net Margin
0.6%
7.0% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.63x
0.16x →0.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.38x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin declining (7.0% → 0.6%), asset turnover improving (0.16x → 0.63x), leverage rising (1.38x → 1.71x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.0% | 0.16 | 1.38 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.6% | 0.15 | 1.61 | 1.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 0.63 | 1.71 | 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.