DuPont Decomposition
Why does SHRIPISTON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.1% = 12.4% × 0.72 × 2.12
Latest: FY2026
Profitability
Net Margin
12.4%
8.1% →12.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
1.09x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.12x
1.47x →2.12x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.0 pp over 5 years. Driven by net margin improving (8.1% → 12.4%), asset turnover declining (1.09x → 0.72x), leverage rising (1.47x → 2.12x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.1% | 1.09 | 1.47 | 13.0% |
| FY2023 | ₹0Cr | ₹0Cr | 11.4% | 1.06 | 1.58 | 19.2% |
| FY2024 | ₹0Cr | ₹0Cr | 14.5% | 0.97 | 1.63 | 23.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.95 | 1.56 | 21.2% |
| FY2026 | ₹0Cr | ₹0Cr | 12.4% | 0.72 | 2.12 | 19.1% |
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.