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
20.1% = 7.9% × 1.30 × 1.96
Latest: FY2025
Profitability
Net Margin
7.9%
6.9% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
0.49x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.96x
1.77x →1.96x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.2 pp over 3 years. Driven by asset turnover improving (0.49x → 1.30x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 0.49 | 1.77 | 5.9% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.58 | 1.44 | 6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.9% | 1.30 | 1.96 | 20.1% |
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.