DuPont Decomposition
Why does BANSALWIRE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 4.1% × 1.61 × 1.71
Latest: FY2025
Profitability
Net Margin
4.1%
2.6% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.61x
3.14x →1.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
3.12x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.3 pp over 4 years. Driven by net margin improving (2.6% → 4.1%), asset turnover declining (3.14x → 1.61x), leverage falling (3.12x → 1.71x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 3.14 | 3.12 | 25.7% |
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 3.20 | 2.65 | 21.2% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 1.94 | 2.74 | 16.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 1.61 | 1.71 | 11.4% |
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.