DuPont Decomposition
Why does SIGMAADV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
57.2% = 54.5% × 0.46 × 2.26
Latest: FY2026
Profitability
Net Margin
54.5%
8.8% →54.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.18x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
1.55x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 54.7 pp over 4 years. Driven by net margin improving (8.8% → 54.5%), asset turnover improving (0.18x → 0.46x), leverage rising (1.55x → 2.26x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.8% | 0.18 | 1.55 | 2.5% |
| FY2023 | ₹0Cr | ₹0.1Cr | 448.0% | 0.01 | 1.95 | 4.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -13.0% | 0.29 | 2.54 | -9.7% |
| FY2026 | ₹0Cr | ₹0Cr | 54.5% | 0.46 | 2.26 | 57.2% |
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.