DuPont Decomposition
Why does STYRENIX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.4% = 5.3% × 1.38 × 1.82
Latest: FY2026
Profitability
Net Margin
5.3%
14.8% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.38x
1.77x →1.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
1.44x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 24.3 pp over 5 years. Driven by net margin declining (14.8% → 5.3%), asset turnover declining (1.77x → 1.38x), leverage rising (1.44x → 1.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.8% | 1.77 | 1.44 | 37.7% |
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 1.88 | 1.77 | 25.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.8% | 2.14 | 1.44 | 24.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 1.30 | 1.96 | 20.0% |
| FY2026 | ₹0Cr | ₹0Cr | 5.3% | 1.38 | 1.82 | 13.4% |
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.