DuPont Decomposition
Why does DBOL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 0.8% × 0.77 × 2.37
Latest: FY2025
Profitability
Net Margin
0.8%
6.7% →0.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.76x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.37x
2.28x →2.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.2 pp over 4 years. Driven by net margin declining (6.7% → 0.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.7% | 0.76 | 2.28 | 11.7% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 1.28 | 2.10 | 11.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 1.04 | 2.29 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 0.77 | 2.37 | 1.4% |
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.