DuPont Decomposition
Why does SHILPAMED earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.4% = 15.8% × 0.42 × 1.43
Latest: FY2026
Profitability
Net Margin
15.8%
5.3% →15.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.40x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.58x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.1 pp over 5 years. Driven by net margin improving (5.3% → 15.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.3% | 0.40 | 1.58 | 3.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -3.1% | 0.36 | 1.63 | -1.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 0.37 | 1.72 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.39 | 1.40 | 3.3% |
| FY2026 | ₹0Cr | ₹0Cr | 15.8% | 0.42 | 1.43 | 9.4% |
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.