DuPont Decomposition
Why does SKIPPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.5% = 3.3% × 1.32 × 2.85
Latest: FY2025
Profitability
Net Margin
3.3%
3.6% →3.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
0.30x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.85x
2.90x →2.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.4 pp over 3 years. Driven by asset turnover improving (0.30x → 1.32x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.6% | 0.30 | 2.90 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.2% | 0.37 | 3.50 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.3% | 1.32 | 2.85 | 12.5% |
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.