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
15.5% = 8.6% × 1.43 × 1.26
Latest: FY2026
Profitability
Net Margin
8.6%
12.5% →8.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
1.56x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.30x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.7 pp over 5 years. Driven by net margin declining (12.5% → 8.6%), asset turnover declining (1.56x → 1.43x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.5% | 1.56 | 1.30 | 25.2% |
| FY2023 | ₹0Cr | ₹0Cr | 9.5% | 1.60 | 1.29 | 19.7% |
| FY2024 | ₹0Cr | ₹0Cr | 10.6% | 1.54 | 1.28 | 20.9% |
| FY2025 | ₹0Cr | ₹0Cr | 9.3% | 1.45 | 1.27 | 17.0% |
| FY2026 | ₹0Cr | ₹0Cr | 8.6% | 1.43 | 1.26 | 15.5% |
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.