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
8.5% = 15.4% × 0.36 × 1.53
Latest: FY2025
Profitability
Net Margin
15.4%
6.7% →15.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.09x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
4.48x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.8 pp over 3 years. Driven by net margin improving (6.7% → 15.4%), asset turnover improving (0.09x → 0.36x), leverage falling (4.48x → 1.53x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.7% | 0.09 | 4.48 | 2.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 0.11 | 1.94 | 0.9% |
| FY2025 | ₹0Cr | ₹0Cr | 15.4% | 0.36 | 1.53 | 8.5% |
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.