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
2.2% = 2.5% × 0.36 × 2.44
Latest: FY2026
Profitability
Net Margin
2.5%
2.3% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.32x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.44x
2.67x →2.44x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~2%. Driven by leverage falling (2.67x → 2.44x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 0.32 | 2.67 | 1.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.5% | 0.29 | 2.72 | -1.2% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 0.35 | 2.51 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.34 | 2.53 | 4.0% |
| FY2026 | ₹0Cr | ₹0Cr | 2.5% | 0.36 | 2.44 | 2.2% |
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.