DuPont Decomposition
Why does SKFINDUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.7% = 6.3% × 1.29 × 1.81
Latest: FY2026
Profitability
Net Margin
6.3%
6.3% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.29x
1.29x →1.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
1.81x →1.81x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 6.3% | 1.29 | 1.81 | 14.7% |
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.