DuPont Decomposition
Why does STYL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
34.8% = 15.2% × 1.26 × 1.82
Latest: FY2025
Profitability
Net Margin
15.2%
5.6% →15.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.26x
1.18x →1.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
3.13x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.3 pp over 4 years. Driven by net margin improving (5.6% → 15.2%), leverage falling (3.13x → 1.82x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.6% | 1.18 | 3.13 | 20.6% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 1.46 | 2.70 | 37.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.9% | 1.62 | 2.21 | 39.0% |
| FY2025 | ₹0Cr | ₹0Cr | 15.2% | 1.26 | 1.82 | 34.8% |
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.