DuPont Decomposition
Why does POLICYBZR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.2% = 9.9% × 0.78 × 1.19
Latest: FY2026
Profitability
Net Margin
9.9%
-58.5% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.24x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.09x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 24.6 pp over 5 years. Driven by net margin improving (-58.5% → 9.9%), asset turnover improving (0.24x → 0.78x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -58.5% | 0.24 | 1.09 | -15.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -19.1% | 0.41 | 1.14 | -8.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 0.51 | 1.15 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 0.66 | 1.17 | 5.5% |
| FY2026 | ₹0Cr | ₹0Cr | 9.9% | 0.78 | 1.19 | 9.2% |
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.