DuPont Decomposition
Why does SILVERTUC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.6% = 7.7% × 1.19 × 1.82
Latest: FY2025
Profitability
Net Margin
7.7%
9.4% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
0.29x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
1.55x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.3 pp over 3 years. Driven by net margin declining (9.4% → 7.7%), asset turnover improving (0.29x → 1.19x), leverage rising (1.55x → 1.82x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 0.29 | 1.55 | 4.3% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 0.45 | 1.52 | 5.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 1.19 | 1.82 | 16.6% |
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.