DuPont Decomposition
Why does SPANDANA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-39.3% = -47.9% × 0.25 × 3.23
Latest: FY2025
Profitability
Net Margin
-47.9%
21.2% →-47.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.05x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.23x
3.03x →3.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 42.7 pp over 3 years. Driven by net margin declining (21.2% → -47.9%), asset turnover improving (0.05x → 0.25x), leverage rising (3.03x → 3.23x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 21.2% | 0.05 | 3.03 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 19.0% | 0.05 | 3.67 | 3.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -47.9% | 0.25 | 3.23 | -39.3% |
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.