DuPont Decomposition

Why does SPENCERS earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

-196.4% = -5.4% × 1.43 × 25.30

Latest: FY2022

Profitability

Net Margin

-5.4%

-5.4% →-5.4%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

1.43x

1.43x →1.43x

Revenue per ₹ of assets

Leverage

Equity Multiplier

25.30x

25.30x →25.30x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2022₹0Cr₹-0Cr-5.4%1.4325.30-196.4%

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)

See DCF fair value for SPENCERS

Combine financial quality with intrinsic value.

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.