DuPont Decomposition
Why does SWELECTES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 2.0% × 0.35 × 1.99
Latest: FY2025
Profitability
Net Margin
2.0%
1.9% →2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.35x
0.16x →0.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.99x
1.89x →1.99x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by asset turnover improving (0.16x → 0.35x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 0.16 | 1.89 | 0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 0.14 | 1.98 | 4.3% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 0.35 | 1.99 | 1.4% |
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.