DuPont Decomposition
Why does SILLYMONKS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 0.8% × 2.44 × 1.41
Latest: FY2025
Profitability
Net Margin
0.8%
-8.1% →0.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.44x
1.44x →2.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.58x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 21.0 pp over 4 years. Driven by net margin improving (-8.1% → 0.8%), asset turnover improving (1.44x → 2.44x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -8.1% | 1.44 | 1.58 | -18.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -23.7% | 1.62 | 1.65 | -63.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.0% | 1.98 | 1.52 | -0.0% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 2.44 | 1.41 | 2.7% |
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.