DuPont Decomposition
Why does BFINVEST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.2% = 635.5% × 0.00 × 1.10
Latest: FY2025
Profitability
Net Margin
635.5%
2201.6% →635.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.00x
0.00x →0.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.09x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~3%. Driven by net margin declining (2201.6% → 635.5%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0.1Cr | ₹1.1Cr | 2201.6% | 0.00 | 1.09 | 2.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1935.5% | 0.00 | 1.10 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 635.5% | 0.00 | 1.10 | 3.2% |
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.