DuPont Decomposition
Why does BEARDSELL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 3.7% × 1.54 × 2.15
Latest: FY2025
Profitability
Net Margin
3.7%
3.7% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.54x
1.57x →1.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.15x
2.56x →2.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.6 pp over 3 years. Driven by leverage falling (2.56x → 2.15x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 1.57 | 2.56 | 14.8% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 1.52 | 2.26 | 11.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.54 | 2.15 | 12.1% |
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.