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 × 8.26
Latest: FY2025
Profitability
Net Margin
1.1%
-20.5% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.05x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.26x
34.49x →8.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 34.4 pp over 3 years. Driven by net margin improving (-20.5% → 1.1%), asset turnover improving (0.05x → 0.25x), leverage falling (34.49x → 8.26x). 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 |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -20.5% | 0.05 | 34.49 | -32.2% |
| FY2024 | ₹0Cr | ₹0Cr | 45.4% | 0.03 | 44.89 | 70.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 0.25 | 8.26 | 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.