DuPont Decomposition
Why does SWANCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.6% = 6.3% × 0.32 × 1.84
Latest: FY2026
Profitability
Net Margin
6.3%
-34.8% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.07x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
5.14x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.3 pp over 5 years. Driven by net margin improving (-34.8% → 6.3%), asset turnover improving (0.07x → 0.32x), leverage falling (5.14x → 1.84x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -34.8% | 0.07 | 5.14 | -12.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.6% | 0.14 | 4.48 | -1.6% |
| FY2024 | ₹0Cr | ₹0Cr | 6.0% | 0.41 | 1.94 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 15.3% | 0.36 | 1.85 | 10.3% |
| FY2026 | ₹0Cr | ₹0Cr | 6.3% | 0.32 | 1.84 | 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.