DuPont Decomposition
Why does BELLACASA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.6% = 4.5% × 1.64 × 1.42
Latest: FY2025
Profitability
Net Margin
4.5%
5.4% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.64x
1.27x →1.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
2.33x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.5 pp over 4 years. Driven by asset turnover improving (1.27x → 1.64x), leverage falling (2.33x → 1.42x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.4% | 1.27 | 2.33 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 1.40 | 1.90 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 1.43 | 1.90 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.64 | 1.42 | 10.6% |
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.