DuPont Decomposition
Why does SHREEJISPG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
41.2% = 23.2% × 0.80 × 2.21
Latest: FY2025
Profitability
Net Margin
23.2%
14.4% →23.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
1.38x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.21x
2.35x →2.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.3 pp over 3 years. Driven by net margin improving (14.4% → 23.2%), asset turnover declining (1.38x → 0.80x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.4% | 1.38 | 2.35 | 46.5% |
| FY2024 | ₹0Cr | ₹0Cr | 17.0% | 1.20 | 1.94 | 39.5% |
| FY2025 | ₹0Cr | ₹0Cr | 23.2% | 0.80 | 2.21 | 41.2% |
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.