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
1.2% = 80.8% × 0.01 × 1.15
Latest: FY2026
Profitability
Net Margin
80.8%
79.0% →80.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.01x →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 (79.0% → 80.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 79.0% | 0.01 | 1.10 | 1.1% |
| FY2023 | ₹0Cr | ₹0Cr | 75.4% | 0.01 | 1.10 | 0.7% |
| FY2024 | ₹0Cr | ₹0Cr | 109.8% | 0.01 | 1.12 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 67.1% | 0.01 | 1.15 | 0.7% |
| FY2026 | ₹0Cr | ₹0Cr | 80.8% | 0.01 | 1.15 | 1.2% |
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.