DuPont Decomposition
Why does SNOWMAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 1.0% × 0.72 × 1.89
Latest: FY2025
Profitability
Net Margin
1.0%
0.6% →1.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.39x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
1.72x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by asset turnover improving (0.39x → 0.72x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 0.39 | 1.72 | 0.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.2% | 0.58 | 1.72 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 0.67 | 1.79 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 1.0% | 0.72 | 1.89 | 1.4% |
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.