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
12.3% = 4.8% × 1.69 × 1.50
Latest: FY2026
Profitability
Net Margin
4.8%
1.7% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.69x
1.85x →1.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
2.20x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 5 years. Driven by net margin improving (1.7% → 4.8%), asset turnover declining (1.85x → 1.69x), leverage falling (2.20x → 1.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 1.85 | 2.20 | 6.9% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 2.07 | 1.76 | 18.1% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 1.87 | 1.68 | 2.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 1.84 | 1.44 | 10.0% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 1.69 | 1.50 | 12.3% |
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.