DuPont Decomposition
Why does SUPRAJIT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.8% = 3.0% × 1.20 × 2.13
Latest: FY2025
Profitability
Net Margin
3.0%
11.4% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
0.22x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
1.43x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.2 pp over 3 years. Driven by net margin declining (11.4% → 3.0%), asset turnover improving (0.22x → 1.20x), leverage rising (1.43x → 2.13x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.4% | 0.22 | 1.43 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 16.7% | 0.23 | 1.39 | 5.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 1.20 | 2.13 | 7.8% |
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.