DuPont Decomposition
Why does SYNCOMF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.4% = 10.8% × 1.11 × 1.21
Latest: FY2025
Profitability
Net Margin
10.8%
9.1% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.71x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.39x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.5 pp over 4 years. Driven by net margin improving (9.1% → 10.8%), asset turnover improving (0.71x → 1.11x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.1% | 0.71 | 1.39 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 13.9% | 0.16 | 1.48 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 9.9% | 0.18 | 1.40 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 1.11 | 1.21 | 14.4% |
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.