DuPont Decomposition
Why does STLTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.2% = -3.2% × 0.70 × 2.78
Latest: FY2025
Profitability
Net Margin
-3.2%
1.9% →-3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.18x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.78x
4.05x →2.78x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.6 pp over 3 years. Driven by net margin declining (1.9% → -3.2%), asset turnover improving (0.18x → 0.70x), leverage falling (4.05x → 2.78x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 0.18 | 4.05 | 1.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -7.2% | 0.14 | 4.12 | -4.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -3.2% | 0.70 | 2.78 | -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.