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
23.0% = 4.4% × 2.87 × 1.83
Latest: FY2026
Profitability
Net Margin
4.4%
2.2% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.87x
4.49x →2.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.83x
2.28x →1.83x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~23%. Driven by net margin improving (2.2% → 4.4%), asset turnover declining (4.49x → 2.87x), leverage falling (2.28x → 1.83x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.2% | 4.49 | 2.28 | 22.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 4.58 | 2.57 | 19.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.3% | 2.98 | 2.40 | 16.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 2.61 | 1.98 | 19.4% |
| FY2026 | ₹0Cr | ₹0Cr | 4.4% | 2.87 | 1.83 | 23.0% |
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.