DuPont Decomposition
Why does SHIVAUM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.4% = 1.8% × 2.56 × 1.87
Latest: FY2025
Profitability
Net Margin
1.8%
3.1% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.56x
3.03x →2.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
1.65x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.9 pp over 4 years. Driven by net margin declining (3.1% → 1.8%), asset turnover declining (3.03x → 2.56x), leverage rising (1.65x → 1.87x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 3.03 | 1.65 | 15.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 3.04 | 1.70 | 14.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 3.02 | 1.73 | 9.8% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 2.56 | 1.87 | 8.4% |
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.