DuPont Decomposition
Why does SUPREMEIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.0% = 9.3% × 1.45 × 1.27
Latest: FY2025
Profitability
Net Margin
9.3%
13.8% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.45x
0.46x →1.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.29x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.8 pp over 3 years. Driven by net margin declining (13.8% → 9.3%), asset turnover improving (0.46x → 1.45x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.8% | 0.46 | 1.29 | 8.2% |
| FY2024 | ₹0Cr | ₹0Cr | 11.8% | 0.46 | 1.28 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 9.3% | 1.45 | 1.27 | 17.0% |
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.