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
14.3% = 3.8% × 1.22 × 3.04
Latest: FY2026
Profitability
Net Margin
3.8%
1.5% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
0.81x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.04x
2.85x →3.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.9 pp over 5 years. Driven by net margin improving (1.5% → 3.8%), asset turnover improving (0.81x → 1.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 0.81 | 2.85 | 3.4% |
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 0.88 | 2.90 | 4.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 1.00 | 3.50 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.2% | 1.36 | 2.85 | 12.5% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 1.22 | 3.04 | 14.3% |
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.