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
18.7% = 13.8% × 0.92 × 1.46
Latest: FY2026
Profitability
Net Margin
13.8%
10.5% →13.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.75x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.44x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.3 pp over 5 years. Driven by net margin improving (10.5% → 13.8%), asset turnover improving (0.75x → 0.92x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.5% | 0.75 | 1.44 | 11.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.90 | 1.48 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 0.94 | 1.44 | 20.7% |
| FY2025 | ₹0Cr | ₹0Cr | 11.1% | 0.89 | 1.47 | 14.6% |
| FY2026 | ₹0Cr | ₹0Cr | 13.8% | 0.92 | 1.46 | 18.7% |
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.