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
6.5% = 4.3% × 0.59 × 2.53
Latest: FY2025
Profitability
Net Margin
4.3%
11.9% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.23x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.53x
2.64x →2.53x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by net margin declining (11.9% → 4.3%), asset turnover improving (0.23x → 0.59x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.9% | 0.23 | 2.64 | 7.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.7% | 0.23 | 2.70 | 8.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.59 | 2.53 | 6.5% |
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.