DuPont Decomposition
Why does SUMMITSEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.7% = 54.5% × 0.01 × 1.15
Latest: FY2025
Profitability
Net Margin
54.5%
49.0% →54.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.00x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.10x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin improving (49.0% → 54.5%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 49.0% | 0.00 | 1.10 | 0.1% |
| FY2023 | ₹0.1Cr | ₹0.1Cr | 68.1% | 0.00 | 1.10 | 0.1% |
| FY2024 | ₹0Cr | ₹0Cr | 73.2% | 0.00 | 1.12 | 0.2% |
| FY2025 | ₹0Cr | ₹0Cr | 54.5% | 0.01 | 1.15 | 0.7% |
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.