DuPont Decomposition
Why does SYNGENE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.5% = 14.1% × 0.52 × 1.44
Latest: FY2025
Profitability
Net Margin
14.1%
18.0% →14.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.52x
0.17x →0.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.61x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 3 years. Driven by net margin declining (18.0% → 14.1%), asset turnover improving (0.17x → 0.52x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 18.0% | 0.17 | 1.61 | 4.9% |
| FY2024 | ₹0Cr | ₹0Cr | 20.6% | 0.15 | 1.44 | 4.4% |
| FY2025 | ₹0Cr | ₹0Cr | 14.1% | 0.52 | 1.44 | 10.5% |
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.