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
23.2% = 12.1% × 1.00 × 1.92
Latest: FY2026
Profitability
Net Margin
12.1%
14.1% →12.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
1.05x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.92x
1.72x →1.92x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 5 years. Driven by net margin declining (14.1% → 12.1%).
Historical Decomposition
Last 5 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 | 10.4% | 1.04 | 1.84 | 19.9% |
| FY2026 | ₹0Cr | ₹0Cr | 12.1% | 1.00 | 1.92 | 23.2% |
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.