DuPont Decomposition
Why does SUDARCOLOR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.8% = 6.3% × 1.08 × 1.45
Latest: FY2025
Profitability
Net Margin
6.3%
5.1% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.08x
0.27x →1.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.53x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.7 pp over 3 years. Driven by net margin improving (5.1% → 6.3%), asset turnover improving (0.27x → 1.08x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.1% | 0.27 | 1.53 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 0.28 | 1.54 | 1.2% |
| FY2025 | ₹0Cr | ₹0Cr | 6.3% | 1.08 | 1.45 | 9.8% |
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.