DuPont Decomposition
Why does NRBBEARING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 10.7% × 0.98 × 1.41
Latest: FY2026
Profitability
Net Margin
10.7%
8.0% →10.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
0.86x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.82x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 5 years. Driven by net margin improving (8.0% → 10.7%), asset turnover improving (0.86x → 0.98x), leverage falling (1.82x → 1.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.0% | 0.86 | 1.82 | 12.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.1% | 0.85 | 1.81 | 14.1% |
| FY2024 | ₹0Cr | ₹0Cr | 22.3% | 0.87 | 1.44 | 27.8% |
| FY2025 | ₹0Cr | ₹0Cr | 6.6% | 0.92 | 1.42 | 8.7% |
| FY2026 | ₹0Cr | ₹0Cr | 10.7% | 0.98 | 1.41 | 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.