DuPont Decomposition
Why does BYKE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.0% = 4.8% × 0.30 × 1.44
Latest: FY2025
Profitability
Net Margin
4.8%
2.0% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.46x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.55x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~2%. Driven by net margin improving (2.0% → 4.8%), asset turnover declining (0.46x → 0.30x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.0% | 0.46 | 1.55 | 1.4% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 0.31 | 1.32 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.8% | 0.30 | 1.44 | 2.0% |
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.