DuPont Decomposition
Why does SYRMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 6.6% × 0.84 × 2.02
Latest: FY2026
Profitability
Net Margin
6.6%
5.5% →6.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.88x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.02x
2.02x →2.02x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 5 years. Driven by net margin improving (5.5% → 6.6%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 0.88 | 2.02 | 9.7% |
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 0.79 | 1.65 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 0.85 | 2.29 | 6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 0.90 | 2.40 | 9.7% |
| FY2026 | ₹0Cr | ₹0Cr | 6.6% | 0.84 | 2.02 | 11.1% |
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.