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
12.7% = 4.8% × 1.21 × 2.21
Latest: FY2026
Profitability
Net Margin
4.8%
9.5% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.05x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.21x
1.60x →2.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.3 pp over 5 years. Driven by net margin declining (9.5% → 4.8%), asset turnover improving (1.05x → 1.21x), leverage rising (1.60x → 2.21x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.5% | 1.05 | 1.60 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 1.13 | 1.99 | 12.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.8% | 1.12 | 1.89 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 1.20 | 2.13 | 7.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 1.21 | 2.21 | 12.7% |
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.