DuPont Decomposition
Why does SIMBHALS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-230.7% = -3.5% × 0.54 × 122.64
Latest: FY2022
Profitability
Net Margin
-3.5%
-3.5% →-3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.54x
0.54x →0.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
122.64x
122.64x →122.64x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -3.5% | 0.54 | 122.64 | -230.7% |
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.