DuPont Decomposition
Why does SWARAJENG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
39.6% = 9.9% × 2.49 × 1.60
Latest: FY2025
Profitability
Net Margin
9.9%
9.7% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.49x
2.46x →2.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.51x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.8 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.7% | 2.46 | 1.51 | 35.8% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 2.64 | 1.57 | 39.0% |
| FY2024 | ₹0Cr | ₹0Cr | 9.8% | 2.54 | 1.51 | 37.4% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 2.49 | 1.60 | 39.6% |
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.