DuPont Decomposition
Why does SHALPAINTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-25.4% = -13.4% × 0.85 × 2.23
Latest: FY2025
Profitability
Net Margin
-13.4%
-16.9% →-13.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.55x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.23x
1.84x →2.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.2 pp over 4 years. Driven by net margin improving (-16.9% → -13.4%), asset turnover improving (0.55x → 0.85x), leverage rising (1.84x → 2.23x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -16.9% | 0.55 | 1.84 | -17.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -7.5% | 0.77 | 1.77 | -10.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -13.9% | 0.79 | 1.70 | -18.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -13.4% | 0.85 | 2.23 | -25.4% |
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.