DuPont Decomposition
Why does SUNTV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.6% = 42.4% × 0.32 × 1.08
Latest: FY2025
Profitability
Net Margin
42.4%
45.2% →42.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.37x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.09x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.8 pp over 3 years. Driven by net margin declining (45.2% → 42.4%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 45.2% | 0.37 | 1.09 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 45.0% | 0.37 | 1.08 | 18.3% |
| FY2025 | ₹0Cr | ₹0Cr | 42.4% | 0.32 | 1.08 | 14.6% |
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.