DuPont Decomposition
Why does BIKAJI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.6% = 7.9% × 1.32 × 1.31
Latest: FY2025
Profitability
Net Margin
7.9%
4.8% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
1.46x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.34x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 4 years. Driven by net margin improving (4.8% → 7.9%), asset turnover declining (1.46x → 1.32x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 1.46 | 1.34 | 9.5% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 1.55 | 1.33 | 13.3% |
| FY2024 | ₹0Cr | ₹0Cr | 11.3% | 1.52 | 1.26 | 21.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.9% | 1.32 | 1.31 | 13.6% |
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.