DuPont Decomposition
Why does SUVIDHAA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-44.3% = -166.8% × 0.13 × 2.08
Latest: FY2025
Profitability
Net Margin
-166.8%
-7.5% →-166.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.32x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
1.64x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 40.3 pp over 4 years. Driven by net margin declining (-7.5% → -166.8%), asset turnover declining (0.32x → 0.13x), leverage rising (1.64x → 2.08x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -7.5% | 0.32 | 1.64 | -4.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.6% | 0.27 | 1.63 | -2.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -211.9% | 0.08 | 1.72 | -29.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -166.8% | 0.13 | 2.08 | -44.3% |
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.