DuPont Decomposition
Why does SWANDEF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-324.4% = -80.1% × 0.09 × 45.48
Latest: FY2026
Profitability
Net Margin
-80.1%
567451.5% →-80.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.00x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
45.48x
5.09x →45.48x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3602.1 pp over 3 years. Driven by net margin declining (567451.5% → -80.1%), leverage rising (5.09x → 45.48x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 567451.5% | 0.00 | 5.09 | 3277.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -2573.4% | 0.00 | 9.78 | -61.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -80.1% | 0.09 | 45.48 | -324.4% |
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.