DuPont Decomposition
Why does SUKHJITS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.4% = 2.7% × 1.45 × 1.90
Latest: FY2025
Profitability
Net Margin
2.7%
6.3% →2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.45x
1.37x →1.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.90x
2.06x →1.90x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.3 pp over 4 years. Driven by net margin declining (6.3% → 2.7%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 1.37 | 2.06 | 17.7% |
| FY2023 | ₹0Cr | ₹0Cr | 4.4% | 1.52 | 2.05 | 13.6% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 1.35 | 2.03 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 1.45 | 1.90 | 7.4% |
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.