DuPont Decomposition
Why does BUILDPRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.4% = 1.9% × 4.25 × 2.94
Latest: FY2026
Profitability
Net Margin
1.9%
1.9% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.25x
4.25x →4.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.94x
2.94x →2.94x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 1.9% | 4.25 | 2.94 | 23.4% |
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.