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
11.3% = 3.9% × 1.65 × 1.76
Latest: FY2026
Profitability
Net Margin
3.9%
2.6% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.65x
3.14x →1.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
3.12x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.4 pp over 5 years. Driven by net margin improving (2.6% → 3.9%), asset turnover declining (3.14x → 1.65x), leverage falling (3.12x → 1.76x).
Historical Decomposition
Last 5 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 | 2.99 | 17.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 1.62 | 1.71 | 11.4% |
| FY2026 | ₹0Cr | ₹0Cr | 3.9% | 1.65 | 1.76 | 11.3% |
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.