DuPont Decomposition
Why does SHIVAMILLS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.1% = -2.3% × 1.42 × 1.28
Latest: FY2025
Profitability
Net Margin
-2.3%
8.3% →-2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
1.61x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.23x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.5 pp over 4 years. Driven by net margin declining (8.3% → -2.3%), asset turnover declining (1.61x → 1.42x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.3% | 1.61 | 1.23 | 16.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.5% | 1.37 | 1.16 | -7.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.1% | 1.28 | 1.28 | -3.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.3% | 1.42 | 1.28 | -4.1% |
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.