DuPont Decomposition
Why does BLUESTARCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.3% = 5.0% × 1.44 × 2.69
Latest: FY2025
Profitability
Net Margin
5.0%
8.6% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.44x
0.49x →1.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.69x
4.06x →2.69x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.3 pp over 3 years. Driven by net margin declining (8.6% → 5.0%), asset turnover improving (0.49x → 1.44x), leverage falling (4.06x → 2.69x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.6% | 0.49 | 4.06 | 16.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 0.50 | 2.54 | 6.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 1.44 | 2.69 | 19.3% |
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.