DuPont Decomposition
Why does SHIVATEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.9% = 3.7% × 1.06 × 2.24
Latest: FY2025
Profitability
Net Margin
3.7%
4.2% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.38x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.24x
2.41x →2.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.2 pp over 4 years. Driven by asset turnover declining (1.38x → 1.06x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.2% | 1.38 | 2.41 | 14.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.6% | 1.33 | 2.30 | -5.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.2% | 1.16 | 2.35 | -8.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.06 | 2.24 | 8.9% |
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.