DuPont Decomposition
Why does EBGNG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.3% = 4.9% × 1.95 × 3.17
Latest: FY2025
Profitability
Net Margin
4.9%
4.3% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.95x
2.61x →1.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.17x
2.45x →3.17x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 4 years. Driven by asset turnover declining (2.61x → 1.95x), leverage rising (2.45x → 3.17x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 2.61 | 2.45 | 27.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 2.26 | 2.55 | 28.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.6% | 1.92 | 3.58 | 31.9% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 1.95 | 3.17 | 30.3% |
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.