DuPont Decomposition
Why does BOROSCI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.6% = 6.1% × 0.86 × 1.26
Latest: FY2025
Profitability
Net Margin
6.1%
8.1% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.94x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.23x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.7 pp over 4 years. Driven by net margin declining (8.1% → 6.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.1% | 0.94 | 1.23 | 9.4% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 0.61 | 1.71 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.0% | 0.80 | 1.31 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.86 | 1.26 | 6.6% |
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.