DuPont Decomposition
Why does SHANTIGOLD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
36.6% = 5.0% × 2.64 × 2.76
Latest: FY2025
Profitability
Net Margin
5.0%
0.8% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.64x
2.00x →2.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.76x
4.29x →2.76x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 30.0 pp over 4 years. Driven by net margin improving (0.8% → 5.0%), asset turnover improving (2.00x → 2.64x), leverage falling (4.29x → 2.76x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.8% | 2.00 | 4.29 | 6.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 2.64 | 3.68 | 28.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 2.19 | 3.37 | 27.8% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 2.64 | 2.76 | 36.6% |
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.