DuPont Decomposition
Why does BIGBLOC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.2% = 4.3% × 0.59 × 2.79
Latest: FY2025
Profitability
Net Margin
4.3%
9.2% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
1.54x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.79x
2.42x →2.79x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 27.1 pp over 4 years. Driven by net margin declining (9.2% → 4.3%), asset turnover declining (1.54x → 0.59x), leverage rising (2.42x → 2.79x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.2% | 1.54 | 2.42 | 34.2% |
| FY2023 | ₹0Cr | ₹0Cr | 15.1% | 1.01 | 2.64 | 40.0% |
| FY2024 | ₹0Cr | ₹0Cr | 12.7% | 0.83 | 2.82 | 29.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.59 | 2.79 | 7.2% |
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.