DuPont Decomposition
Why does BAGFILMS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.9% = 4.6% × 0.34 × 1.83
Latest: FY2025
Profitability
Net Margin
4.6%
2.3% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.32x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.83x
1.94x →1.83x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 4 years. Driven by net margin improving (2.3% → 4.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 0.32 | 1.94 | 1.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.5% | 0.29 | 1.97 | -0.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 0.35 | 1.82 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.34 | 1.83 | 2.9% |
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.