DuPont Decomposition
Why does STYLAMIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.5% = 11.9% × 1.32 × 1.18
Latest: FY2025
Profitability
Net Margin
11.9%
11.3% →11.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
0.44x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.31x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.0 pp over 3 years. Driven by asset turnover improving (0.44x → 1.32x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 0.44 | 1.31 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 15.7% | 0.39 | 1.13 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 11.9% | 1.32 | 1.18 | 18.5% |
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.