DuPont Decomposition
Why does NIVABUPA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.1% = 1.9% × 0.59 × 3.53
Latest: FY2026
Profitability
Net Margin
1.9%
-10.7% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.68x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.53x
1.06x →3.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.8 pp over 5 years. Driven by net margin improving (-10.7% → 1.9%), leverage rising (1.06x → 3.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -10.7% | 0.68 | 1.06 | -7.7% |
| FY2023 | ₹0Cr | ₹0Cr | 0.5% | 0.72 | 1.36 | 0.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 0.72 | 1.58 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.0% | 0.55 | 2.17 | 4.8% |
| FY2026 | ₹0Cr | ₹0Cr | 1.9% | 0.59 | 3.53 | 4.1% |
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.