DuPont Decomposition
Why does SHRINGARMS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.4% = 4.4% × 3.73 × 1.87
Latest: FY2025
Profitability
Net Margin
4.4%
2.5% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.73x
4.09x →3.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.37x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.8 pp over 4 years. Driven by net margin improving (2.5% → 4.4%), asset turnover declining (4.09x → 3.73x), leverage falling (2.37x → 1.87x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.5% | 4.09 | 2.37 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 4.42 | 2.00 | 22.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 4.08 | 1.94 | 22.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 3.73 | 1.87 | 30.4% |
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.