DuPont Decomposition
Why does BERGEPAINT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.1% = 10.3% × 1.25 × 1.48
Latest: FY2025
Profitability
Net Margin
10.3%
7.6% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.25x
0.31x →1.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
1.77x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.0 pp over 3 years. Driven by net margin improving (7.6% → 10.3%), asset turnover improving (0.31x → 1.25x), leverage falling (1.77x → 1.48x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.6% | 0.31 | 1.77 | 4.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 0.30 | 1.56 | 4.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.3% | 1.25 | 1.48 | 19.1% |
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.