DuPont Decomposition
Why does BOSCHLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.6% = 11.4% × 0.87 × 1.47
Latest: FY2025
Profitability
Net Margin
11.4%
9.8% →11.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.25x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.48x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.0 pp over 3 years. Driven by net margin improving (9.8% → 11.4%), asset turnover improving (0.25x → 0.87x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.25 | 1.48 | 3.6% |
| FY2024 | ₹0Cr | ₹0Cr | 13.3% | 0.24 | 1.44 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 11.4% | 0.87 | 1.47 | 14.6% |
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.