DuPont Decomposition
Why does SURAJLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 5.8% × 1.04 × 1.67
Latest: FY2025
Profitability
Net Margin
5.8%
0.9% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
2.16x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.67x
1.71x →1.67x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.7 pp over 4 years. Driven by net margin improving (0.9% → 5.8%), asset turnover declining (2.16x → 1.04x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 2.16 | 1.71 | 3.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 2.50 | 1.40 | 19.4% |
| FY2024 | ₹0Cr | ₹0Cr | 6.5% | 1.78 | 1.51 | 17.6% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 1.04 | 1.67 | 10.0% |
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.