DuPont Decomposition
Why does SHREYANIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.9% = 8.2% × 1.00 × 1.44
Latest: FY2025
Profitability
Net Margin
8.2%
1.7% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
1.35x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.86x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.6 pp over 4 years. Driven by net margin improving (1.7% → 8.2%), asset turnover declining (1.35x → 1.00x), leverage falling (1.86x → 1.44x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 1.35 | 1.86 | 4.3% |
| FY2023 | ₹0Cr | ₹0Cr | 8.5% | 1.79 | 1.60 | 24.3% |
| FY2024 | ₹0Cr | ₹0Cr | 12.5% | 1.25 | 1.46 | 22.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.2% | 1.00 | 1.44 | 11.9% |
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.