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
33.4% = 19.0% × 0.88 × 1.99
Latest: FY2026
Profitability
Net Margin
19.0%
48.7% →19.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.88x
1.06x →0.88x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.99x
5.03x →1.99x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 225.8 pp over 4 years. Driven by net margin declining (48.7% → 19.0%), asset turnover declining (1.06x → 0.88x), leverage falling (5.03x → 1.99x).
Historical Decomposition
Last 4 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 | 19.1% | 0.84 | 2.12 | 33.9% |
| FY2026 | ₹0Cr | ₹0Cr | 19.0% | 0.88 | 1.99 | 33.4% |
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.