DuPont Decomposition
Why does STYLEBAAZA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.6% = 1.1% × 0.77 × 4.34
Latest: FY2025
Profitability
Net Margin
1.1%
-1.4% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.73x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.34x
5.25x →4.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.2 pp over 4 years. Driven by net margin improving (-1.4% → 1.1%), leverage falling (5.25x → 4.34x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.4% | 0.73 | 5.25 | -5.6% |
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 0.91 | 4.48 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.3% | 0.83 | 5.42 | 10.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 0.77 | 4.34 | 3.6% |
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.