DuPont Decomposition
Why does SUMICHEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.0% = 16.8% × 0.72 × 1.32
Latest: FY2026
Profitability
Net Margin
16.8%
13.9% →16.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
1.01x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.56x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.0 pp over 5 years. Driven by net margin improving (13.9% → 16.8%), asset turnover declining (1.01x → 0.72x), leverage falling (1.56x → 1.32x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.9% | 1.01 | 1.56 | 22.0% |
| FY2023 | ₹0Cr | ₹0Cr | 14.5% | 1.03 | 1.41 | 21.1% |
| FY2024 | ₹0Cr | ₹0Cr | 13.1% | 0.85 | 1.36 | 15.1% |
| FY2025 | ₹0Cr | ₹0Cr | 16.1% | 0.79 | 1.37 | 17.4% |
| FY2026 | ₹0Cr | ₹0Cr | 16.8% | 0.72 | 1.32 | 16.0% |
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.