DuPont Decomposition
Why does DBCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 16.2% × 0.75 × 1.37
Latest: FY2025
Profitability
Net Margin
16.2%
8.1% →16.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.80x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.32x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.0 pp over 3 years. Driven by net margin improving (8.1% → 16.2%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.1% | 0.80 | 1.32 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 18.1% | 0.78 | 1.35 | 19.2% |
| FY2025 | ₹0Cr | ₹0Cr | 16.2% | 0.75 | 1.37 | 16.7% |
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.