DuPont Decomposition
Why does SHREEPUSHK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 7.2% × 1.01 × 1.59
Latest: FY2026
Profitability
Net Margin
7.2%
9.6% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.93x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.58x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.5 pp over 5 years. Driven by net margin declining (9.6% → 7.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.6% | 0.93 | 1.58 | 14.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 1.04 | 1.50 | 8.5% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 1.02 | 1.50 | 7.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.93 | 1.61 | 10.9% |
| FY2026 | ₹0Cr | ₹0Cr | 7.2% | 1.01 | 1.59 | 11.5% |
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.