DuPont Decomposition
Why does BIOFILCHEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.0% = 1.7% × 0.66 × 2.71
Latest: FY2025
Profitability
Net Margin
1.7%
3.1% →1.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
1.19x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.71x
1.11x →2.71x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 4 years. Driven by net margin declining (3.1% → 1.7%), asset turnover declining (1.19x → 0.66x), leverage rising (1.11x → 2.71x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 1.19 | 1.11 | 4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 0.96 | 1.82 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 0.85 | 2.59 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 1.7% | 0.66 | 2.71 | 3.0% |
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.