DuPont Decomposition
Why does SOLARA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.1% = 0.0% × 0.56 × 2.03
Latest: FY2025
Profitability
Net Margin
0.0%
0.3% →0.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.48x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.03x
1.93x →2.03x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~0%.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.3% | 0.48 | 1.93 | 0.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -20.6% | 0.53 | 2.52 | -27.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.0% | 0.56 | 2.03 | 0.1% |
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.