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
18.6% = 13.3% × 1.15 × 1.21
Latest: FY2026
Profitability
Net Margin
13.3%
9.2% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.15x
1.35x →1.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.55x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~19%. Driven by net margin improving (9.2% → 13.3%), asset turnover declining (1.35x → 1.15x), leverage falling (1.55x → 1.21x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.2% | 1.35 | 1.55 | 19.3% |
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 1.77 | 1.31 | 23.3% |
| FY2024 | ₹0Cr | ₹0Cr | 14.1% | 1.51 | 1.13 | 23.9% |
| FY2025 | ₹0Cr | ₹0Cr | 11.9% | 1.32 | 1.18 | 18.5% |
| FY2026 | ₹0Cr | ₹0Cr | 13.3% | 1.15 | 1.21 | 18.6% |
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.