DuPont Decomposition
Why does BUTTERFLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 3.8% × 1.82 × 1.44
Latest: FY2025
Profitability
Net Margin
3.8%
0.8% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.82x
0.37x →1.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.76x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.4 pp over 3 years. Driven by net margin improving (0.8% → 3.8%), asset turnover improving (0.37x → 1.82x), leverage falling (1.76x → 1.44x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 0.37 | 1.76 | 0.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -11.9% | 0.31 | 1.83 | -6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 1.82 | 1.44 | 10.0% |
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.