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
17.0% = 5.1% × 2.52 × 1.32
Latest: FY2026
Profitability
Net Margin
5.1%
2.5% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.52x
4.09x →2.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
2.37x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.6 pp over 5 years. Driven by net margin improving (2.5% → 5.1%), asset turnover declining (4.09x → 2.52x), leverage falling (2.37x → 1.32x).
Historical Decomposition
Last 5 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 | 4.3% | 3.81 | 1.87 | 30.4% |
| FY2026 | ₹0Cr | ₹0Cr | 5.1% | 2.52 | 1.32 | 17.0% |
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.