DuPont Decomposition
Why does BRIGHOTEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 11.1% × 0.38 × 1.44
Latest: FY2026
Profitability
Net Margin
11.1%
-52.3% →11.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.17x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
21.65x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 196.7 pp over 5 years. Driven by net margin improving (-52.3% → 11.1%), asset turnover improving (0.17x → 0.38x), leverage falling (21.65x → 1.44x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -52.3% | 0.17 | 21.65 | -190.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.1% | 0.42 | 19.96 | -9.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 0.45 | 13.23 | 37.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.49 | 10.91 | 23.2% |
| FY2026 | ₹0Cr | ₹0Cr | 11.1% | 0.38 | 1.44 | 6.1% |
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.