DuPont Decomposition
Why does SIMPLEXINF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.2% = 1.1% × 0.25 × 8.28
Latest: FY2025
Profitability
Net Margin
1.1%
-26.0% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.21x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.28x
13.17x →8.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 72.7 pp over 4 years. Driven by net margin improving (-26.0% → 1.1%), leverage falling (13.17x → 8.28x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -26.0% | 0.21 | 13.17 | -70.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -25.3% | 0.18 | 34.49 | -156.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.3% | 0.13 | 44.89 | -31.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 0.25 | 8.28 | 2.2% |
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.