DuPont Decomposition
Why does BALMLAWRIE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.4% = 11.3% × 0.77 × 1.53
Latest: FY2025
Profitability
Net Margin
11.3%
7.1% →11.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.23x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.58x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.8 pp over 3 years. Driven by net margin improving (7.1% → 11.3%), asset turnover improving (0.23x → 0.77x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.1% | 0.23 | 1.58 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 12.7% | 0.20 | 1.58 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 11.3% | 0.77 | 1.53 | 13.4% |
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.