DuPont Decomposition
Why does SUZLON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
33.9% = 19.3% × 0.83 × 2.12
Latest: FY2025
Profitability
Net Margin
19.3%
48.7% →19.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
1.06x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.12x
5.03x →2.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 225.3 pp over 3 years. Driven by net margin declining (48.7% → 19.2%), asset turnover declining (1.06x → 0.83x), leverage falling (5.03x → 2.12x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 48.7% | 1.06 | 5.03 | 259.2% |
| FY2024 | ₹0Cr | ₹0Cr | 10.3% | 0.89 | 1.83 | 16.8% |
| FY2025 | ₹0Cr | ₹0Cr | 19.3% | 0.83 | 2.12 | 33.9% |
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.