DuPont Decomposition
Why does SSWL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.0% = 4.4% × 1.30 × 2.09
Latest: FY2025
Profitability
Net Margin
4.4%
5.8% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
1.32x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.09x
2.84x →2.09x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.6 pp over 4 years. Driven by net margin declining (5.8% → 4.4%), leverage falling (2.84x → 2.09x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.8% | 1.32 | 2.84 | 21.6% |
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 1.45 | 2.45 | 17.1% |
| FY2024 | ₹0Cr | ₹0Cr | 15.5% | 1.32 | 2.28 | 46.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.30 | 2.09 | 12.0% |
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.