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
13.8% = 4.5% × 1.81 × 1.70
Latest: FY2025
Profitability
Net Margin
4.5%
2.4% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.81x
0.48x →1.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.78x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.7 pp over 3 years. Driven by net margin improving (2.4% → 4.5%), asset turnover improving (0.48x → 1.81x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 0.48 | 1.78 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 0.50 | 1.73 | 3.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.81 | 1.70 | 13.8% |
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.