DuPont Decomposition
Why does SUNDRMFAST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 9.3% × 1.04 × 1.44
Latest: FY2025
Profitability
Net Margin
9.3%
8.8% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.31x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.53x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.8 pp over 3 years. Driven by asset turnover improving (0.31x → 1.04x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.8% | 0.31 | 1.53 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 0.29 | 1.46 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 9.3% | 1.04 | 1.44 | 14.1% |
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.