DuPont Decomposition
Why does SUDEEPPHRM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
28.1% = 27.9% × 0.69 × 1.45
Latest: FY2025
Profitability
Net Margin
27.9%
14.6% →27.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
1.01x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.88x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~28%. Driven by net margin improving (14.6% → 27.9%), asset turnover declining (1.01x → 0.69x), leverage falling (1.88x → 1.45x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.6% | 1.01 | 1.88 | 27.9% |
| FY2024 | ₹0Cr | ₹0Cr | 29.3% | 0.88 | 1.44 | 37.4% |
| FY2025 | ₹0Cr | ₹0Cr | 27.9% | 0.69 | 1.45 | 28.1% |
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.