DuPont Decomposition
Why does BAYERCROP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.9% = 10.7% × 1.01 × 1.84
Latest: FY2025
Profitability
Net Margin
10.7%
14.1% →10.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
1.05x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
1.72x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.6 pp over 4 years. Driven by net margin declining (14.1% → 10.7%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.1% | 1.05 | 1.72 | 25.6% |
| FY2023 | ₹0Cr | ₹0Cr | 15.3% | 1.06 | 1.73 | 28.0% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 1.06 | 1.61 | 26.0% |
| FY2025 | ₹0Cr | ₹0Cr | 10.7% | 1.01 | 1.84 | 19.9% |
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.