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
6.0% = 8.4% × 0.32 × 2.26
Latest: FY2026
Profitability
Net Margin
8.4%
9.4% →8.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.25x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
1.81x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.8 pp over 5 years. Driven by net margin declining (9.4% → 8.4%), leverage rising (1.81x → 2.26x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.4% | 0.25 | 1.81 | 4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 0.16 | 1.89 | 0.7% |
| FY2024 | ₹0Cr | ₹0Cr | 26.2% | 0.14 | 1.98 | 7.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 0.36 | 2.04 | 1.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.4% | 0.32 | 2.26 | 6.0% |
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.