DuPont Decomposition
Why does BLUECHIP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-144.8% = -62489.4% × 0.00 × 3.30
Latest: FY2024
Profitability
Net Margin
-62489.4%
25525.9% →-62489.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.00x
0.00x →0.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.30x
1.98x →3.30x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 159.2 pp over 2 years. Driven by net margin declining (25525.9% → -62489.4%), leverage rising (1.98x → 3.30x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 25525.9% | 0.00 | 1.98 | 14.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -62489.4% | 0.00 | 3.30 | -144.8% |
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.