DuPont Decomposition
Why does SINCLAIR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 26.2% × 0.36 × 1.28
Latest: FY2025
Profitability
Net Margin
26.2%
23.5% →26.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.22x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.20x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 4 years. Driven by net margin improving (23.5% → 26.2%), asset turnover improving (0.22x → 0.36x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.5% | 0.22 | 1.20 | 6.3% |
| FY2023 | ₹0Cr | ₹0Cr | 58.1% | 0.35 | 1.18 | 24.3% |
| FY2024 | ₹0Cr | ₹0Cr | 36.8% | 0.43 | 1.21 | 19.1% |
| FY2025 | ₹0Cr | ₹0Cr | 26.2% | 0.36 | 1.28 | 12.1% |
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.