DuPont Decomposition
Why does SUBEXLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.3% = -11.0% × 0.59 × 1.60
Latest: FY2025
Profitability
Net Margin
-11.0%
6.3% →-11.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.46x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.28x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.1 pp over 4 years. Driven by net margin declining (6.3% → -11.0%), asset turnover improving (0.46x → 0.59x), leverage rising (1.28x → 1.60x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 0.46 | 1.28 | 3.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -18.4% | 0.40 | 1.35 | -9.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -61.9% | 0.58 | 1.59 | -57.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -11.0% | 0.59 | 1.60 | -10.3% |
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.