DuPont Decomposition
Why does SUBROS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.3% = 4.4% × 1.76 × 1.72
Latest: FY2026
Profitability
Net Margin
4.4%
1.4% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.76x
1.49x →1.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.83x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.4 pp over 5 years. Driven by net margin improving (1.4% → 4.4%), asset turnover improving (1.49x → 1.76x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 1.49 | 1.83 | 3.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 1.81 | 1.78 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 1.85 | 1.73 | 10.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.81 | 1.70 | 13.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.4% | 1.76 | 1.72 | 13.3% |
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.