DuPont Decomposition
Why does BMWVENTLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.6% = 1.6% × 3.04 × 3.22
Latest: FY2025
Profitability
Net Margin
1.6%
2.0% →1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.04x
4.48x →3.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.22x
2.80x →3.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.1 pp over 4 years. Driven by asset turnover declining (4.48x → 3.04x), leverage rising (2.80x → 3.22x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.0% | 4.48 | 2.80 | 25.7% |
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 4.17 | 3.08 | 20.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 2.98 | 3.46 | 16.0% |
| FY2025 | ₹0Cr | ₹0Cr | 1.6% | 3.04 | 3.22 | 15.6% |
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.