DuPont Decomposition
Why does BROOKS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.2% = -12.1% × 0.66 × 1.26
Latest: FY2025
Profitability
Net Margin
-12.1%
-21.4% →-12.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.46x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
2.24x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.9 pp over 4 years. Driven by net margin improving (-21.4% → -12.1%), asset turnover improving (0.46x → 0.66x), leverage falling (2.24x → 1.26x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -21.4% | 0.46 | 2.24 | -22.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -33.4% | 0.57 | 1.48 | -28.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -24.8% | 0.87 | 1.38 | -29.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.1% | 0.66 | 1.26 | -10.2% |
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.