DuPont Decomposition
Why does SKYGOLD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.4% = 3.7% × 2.61 × 1.98
Latest: FY2025
Profitability
Net Margin
3.7%
2.2% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.61x
4.49x →2.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.98x
2.28x →1.98x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.7 pp over 4 years. Driven by net margin improving (2.2% → 3.7%), asset turnover declining (4.49x → 2.61x), leverage falling (2.28x → 1.98x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.2% | 4.49 | 2.28 | 22.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 1.07 | 2.57 | 6.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 0.88 | 2.40 | 5.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 2.61 | 1.98 | 19.4% |
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.