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
8.5% = 6.8% × 0.90 × 1.39
Latest: FY2025
Profitability
Net Margin
6.8%
10.8% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.26x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.81x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.4 pp over 3 years. Driven by net margin declining (10.8% → 6.8%), asset turnover improving (0.26x → 0.90x), leverage falling (1.81x → 1.39x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.8% | 0.26 | 1.81 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 11.2% | 0.23 | 1.44 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.90 | 1.39 | 8.5% |
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.