DuPont Decomposition
Why does BOROLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.4% = 6.2% × 0.93 × 1.45
Latest: FY2026
Profitability
Net Margin
6.2%
10.0% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.88x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.25x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.5 pp over 5 years. Driven by net margin declining (10.0% → 6.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.0% | 0.88 | 1.25 | 10.9% |
| FY2023 | ₹0Cr | ₹0Cr | 7.0% | 0.87 | 1.67 | 10.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.0% | 0.87 | 1.86 | 11.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.7% | 0.98 | 1.40 | 9.2% |
| FY2026 | ₹0Cr | ₹0Cr | 6.2% | 0.93 | 1.45 | 8.4% |
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.