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
27.0% = 3.4% × 1.94 × 4.05
Latest: FY2025
Profitability
Net Margin
3.4%
-5.3% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.94x
0.19x →1.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.05x
1.58x →4.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 28.5 pp over 3 years. Driven by net margin improving (-5.3% → 3.4%), asset turnover improving (0.19x → 1.94x), leverage rising (1.58x → 4.05x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -5.3% | 0.19 | 1.58 | -1.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 0.53 | 5.77 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 1.94 | 4.05 | 27.0% |
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.