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% = -2832.2% × 0.02 × 3.30
Latest: FY2024
Profitability
Net Margin
-2832.2%
-2325.2% →-2832.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.00x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.30x
2.59x →3.30x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 138.4 pp over 3 years. Driven by net margin declining (-2325.2% → -2832.2%), leverage rising (2.59x → 3.30x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2325.2% | 0.00 | 2.59 | -6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 1919.8% | 0.00 | 1.98 | 14.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -2832.2% | 0.02 | 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.