DuPont Decomposition
Why does BECTORFOOD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 7.9% × 1.16 × 1.34
Latest: FY2025
Profitability
Net Margin
7.9%
8.0% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
0.42x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.53x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.2 pp over 3 years. Driven by asset turnover improving (0.42x → 1.16x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.0% | 0.42 | 1.53 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.37 | 1.66 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 7.9% | 1.16 | 1.34 | 12.3% |
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.