DuPont Decomposition
Why does SURAKSHA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.2% = 10.4% × 0.69 × 1.83
Latest: FY2026
Profitability
Net Margin
10.4%
9.3% →10.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.81x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.83x
1.89x →1.83x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 5 years. Driven by net margin improving (9.3% → 10.4%), asset turnover declining (0.81x → 0.69x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 0.81 | 1.89 | 14.3% |
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.68 | 1.80 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 10.8% | 0.73 | 1.67 | 13.2% |
| FY2025 | ₹0Cr | ₹0Cr | 12.6% | 0.76 | 1.58 | 15.1% |
| FY2026 | ₹0Cr | ₹0Cr | 10.4% | 0.69 | 1.83 | 13.2% |
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.