DuPont Decomposition
Why does DBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.1% = 14.5% × 0.48 × 2.77
Latest: FY2026
Profitability
Net Margin
14.5%
-6.0% →14.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.56x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.77x
4.60x →2.77x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 34.5 pp over 5 years. Driven by net margin improving (-6.0% → 14.5%), leverage falling (4.60x → 2.77x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -6.0% | 0.56 | 4.60 | -15.5% |
| FY2023 | ₹0Cr | ₹0Cr | 0.0% | 0.67 | 3.86 | 0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 0.71 | 3.81 | 4.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.7% | 0.57 | 3.89 | 12.7% |
| FY2026 | ₹0Cr | ₹0Cr | 14.5% | 0.48 | 2.77 | 19.1% |
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.