DuPont Decomposition
Why does SUNDROP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-7.6% = -12.3% × 0.50 × 1.24
Latest: FY2025
Profitability
Net Margin
-12.3%
2.8% →-12.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
1.48x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.34x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.2 pp over 4 years. Driven by net margin declining (2.8% → -12.2%), asset turnover declining (1.48x → 0.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 1.48 | 1.34 | 5.6% |
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 1.33 | 1.32 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 1.18 | 1.29 | 2.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.3% | 0.50 | 1.24 | -7.6% |
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.