DuPont Decomposition
Why does SIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.4% = 0.9% × 2.09 × 3.00
Latest: FY2026
Profitability
Net Margin
0.9%
3.2% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.09x
1.97x →2.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.00x
2.46x →3.00x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.3 pp over 5 years. Driven by net margin declining (3.2% → 0.9%), asset turnover improving (1.97x → 2.09x), leverage rising (2.46x → 3.00x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 1.97 | 2.46 | 15.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.0% | 1.99 | 2.45 | 14.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 2.05 | 2.47 | 7.9% |
| FY2025 | ₹0Cr | ₹0Cr | 0.1% | 2.16 | 2.54 | 0.5% |
| FY2026 | ₹0Cr | ₹0Cr | 0.9% | 2.09 | 3.00 | 5.4% |
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.