DuPont Decomposition
Why does LGBBROSLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 10.4% × 1.03 × 1.39
Latest: FY2026
Profitability
Net Margin
10.4%
12.7% →10.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.03x
1.13x →1.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.51x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.9 pp over 5 years. Driven by net margin declining (12.7% → 10.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.7% | 1.13 | 1.51 | 21.7% |
| FY2023 | ₹0Cr | ₹0Cr | 12.4% | 1.09 | 1.37 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.4% | 0.98 | 1.36 | 16.5% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 1.00 | 1.35 | 15.9% |
| FY2026 | ₹0Cr | ₹0Cr | 10.4% | 1.03 | 1.39 | 14.8% |
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.