DuPont Decomposition
Why does BANARBEADS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.5% = 10.3% × 0.45 × 1.19
Latest: FY2025
Profitability
Net Margin
10.3%
12.1% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.45x
0.40x →0.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.16x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by net margin declining (12.1% → 10.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.1% | 0.40 | 1.16 | 5.7% |
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.46 | 1.06 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 10.1% | 0.46 | 1.10 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.3% | 0.45 | 1.19 | 5.5% |
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.