DuPont Decomposition
Why does SUYOG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.1% = 21.1% × 0.28 × 1.71
Latest: FY2025
Profitability
Net Margin
21.1%
32.8% →21.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.35x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.92x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.8 pp over 4 years. Driven by net margin declining (32.8% → 21.1%), leverage falling (1.92x → 1.71x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 32.8% | 0.35 | 1.92 | 22.0% |
| FY2023 | ₹0Cr | ₹0Cr | 32.2% | 0.30 | 2.05 | 19.8% |
| FY2024 | ₹0Cr | ₹0Cr | 38.0% | 0.33 | 1.68 | 21.2% |
| FY2025 | ₹0Cr | ₹0Cr | 21.1% | 0.28 | 1.71 | 10.1% |
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.