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
40.1% = 9.8% × 2.58 × 1.59
Latest: FY2026
Profitability
Net Margin
9.8%
9.6% →9.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.58x
2.47x →2.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.51x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 5 years. Driven by asset turnover improving (2.47x → 2.58x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.6% | 2.47 | 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% | 2.50 | 1.60 | 39.6% |
| FY2026 | ₹0Cr | ₹0Cr | 9.8% | 2.58 | 1.59 | 40.1% |
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.