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
6.5% = 8.5% × 0.53 × 1.46
Latest: FY2026
Profitability
Net Margin
8.5%
15.8% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.45x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.69x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.5 pp over 5 years. Driven by net margin declining (15.8% → 8.5%), leverage falling (1.69x → 1.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.8% | 0.45 | 1.69 | 12.0% |
| FY2023 | ₹0Cr | ₹0Cr | 15.1% | 0.53 | 1.61 | 12.8% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 0.55 | 1.44 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 13.6% | 0.54 | 1.44 | 10.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.5% | 0.53 | 1.46 | 6.5% |
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.