DuPont Decomposition
Why does SYMPHONY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.9% = 13.5% × 1.18 × 1.75
Latest: FY2025
Profitability
Net Margin
13.5%
9.8% →13.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
1.08x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.75x
1.21x →1.75x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.2 pp over 3 years. Driven by net margin improving (9.8% → 13.5%), leverage rising (1.21x → 1.75x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 1.08 | 1.21 | 12.8% |
| FY2024 | ₹0Cr | ₹0Cr | 12.8% | 0.95 | 1.63 | 19.8% |
| FY2025 | ₹0Cr | ₹0Cr | 13.5% | 1.18 | 1.75 | 27.9% |
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.