DuPont Decomposition
Why does SILGO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 10.1% × 0.69 × 1.10
Latest: FY2025
Profitability
Net Margin
10.1%
6.6% →10.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.68x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.80x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~8%. Driven by net margin improving (6.6% → 10.1%), leverage falling (1.80x → 1.10x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.6% | 0.68 | 1.80 | 8.1% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 0.65 | 1.70 | 7.7% |
| FY2024 | ₹0Cr | ₹0Cr | 9.0% | 0.55 | 1.17 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 10.1% | 0.69 | 1.10 | 7.7% |
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.