DuPont Decomposition
Why does SUNFLAG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.9% = 4.6% × 0.32 × 1.28
Latest: FY2025
Profitability
Net Margin
4.6%
4.7% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.17x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.48x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~2%. Driven by asset turnover improving (0.17x → 0.32x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.7% | 0.17 | 1.48 | 1.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.7% | 0.13 | 1.36 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.32 | 1.28 | 1.9% |
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.