DuPont Decomposition
Why does SECURKLOUD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-56.9% = -8.3% × 0.71 × 9.62
Latest: FY2025
Profitability
Net Margin
-8.3%
-17.5% →-8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
1.21x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.62x
6.08x →9.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 72.1 pp over 3 years. Driven by net margin improving (-17.5% → -8.3%), asset turnover declining (1.21x → 0.71x), leverage rising (6.08x → 9.62x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -17.5% | 1.21 | 6.08 | -128.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -10.6% | 1.59 | 13.27 | -224.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.3% | 0.71 | 9.62 | -56.9% |
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.