DuPont Decomposition
Why does SUPERHOUSE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.9% = 1.5% × 0.74 × 1.79
Latest: FY2025
Profitability
Net Margin
1.5%
5.7% →1.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.79x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
1.86x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.4 pp over 4 years. Driven by net margin declining (5.7% → 1.5%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.7% | 0.79 | 1.86 | 8.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.6% | 0.87 | 1.85 | 5.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.77 | 1.77 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.5% | 0.74 | 1.79 | 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.