DuPont Decomposition
Why does SOMICONVEY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.2% = 5.0% × 0.91 × 1.36
Latest: FY2026
Profitability
Net Margin
5.0%
3.0% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.53x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.67x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 5 years. Driven by net margin improving (3.0% → 5.0%), asset turnover improving (0.53x → 0.91x), leverage falling (1.67x → 1.36x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.0% | 0.53 | 1.67 | 2.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.91 | 1.55 | 5.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.5% | 0.92 | 1.55 | 6.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.4% | 0.83 | 1.59 | 7.2% |
| FY2026 | ₹0Cr | ₹0Cr | 5.0% | 0.91 | 1.36 | 6.2% |
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.