DuPont Decomposition
Why does BBOX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.9% = 3.4% × 1.47 × 3.34
Latest: FY2026
Profitability
Net Margin
3.4%
1.4% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.47x
2.01x →1.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.34x
10.19x →3.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.0 pp over 5 years. Driven by net margin improving (1.4% → 3.4%), asset turnover declining (2.01x → 1.47x), leverage falling (10.19x → 3.34x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 2.01 | 10.19 | 27.9% |
| FY2023 | ₹0Cr | ₹0Cr | 0.4% | 2.09 | 10.14 | 8.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.2% | 2.24 | 5.82 | 28.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 1.94 | 4.05 | 27.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.4% | 1.47 | 3.34 | 16.9% |
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.