DuPont Decomposition
Why does BOMDYEING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.9% = 31.0% × 0.53 × 1.28
Latest: FY2025
Profitability
Net Margin
31.0%
176.8% →31.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.65x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.37x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 136.4 pp over 2 years. Driven by net margin declining (176.8% → 31.0%), asset turnover declining (0.65x → 0.53x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹0Cr | 176.8% | 0.65 | 1.37 | 157.3% |
| FY2025 | ₹0Cr | ₹0Cr | 31.0% | 0.53 | 1.28 | 20.9% |
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.