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
16.3% = 9.5% × 1.18 × 1.45
Latest: FY2026
Profitability
Net Margin
9.5%
9.6% →9.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
1.20x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.84x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.9 pp over 5 years. Driven by leverage falling (1.84x → 1.45x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.6% | 1.20 | 1.84 | 21.2% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 1.31 | 1.77 | 19.1% |
| FY2024 | ₹0Cr | ₹0Cr | 10.5% | 1.33 | 1.56 | 21.7% |
| FY2025 | ₹0Cr | ₹0Cr | 10.2% | 1.26 | 1.48 | 19.2% |
| FY2026 | ₹0Cr | ₹0Cr | 9.5% | 1.18 | 1.45 | 16.3% |
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.