DuPont Decomposition
Why does SURYODAY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.0% = 8.7% × 0.08 × 8.10
Latest: FY2025
Profitability
Net Margin
8.7%
9.2% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.09x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.10x
6.22x →8.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.1 pp over 2 years. Driven by leverage rising (6.22x → 8.10x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.09 | 6.22 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.08 | 8.10 | 6.0% |
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.