DuPont Decomposition
Why does TBZ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 2.6% × 1.48 × 2.69
Latest: FY2025
Profitability
Net Margin
2.6%
2.5% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.48x
0.32x →1.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.69x
2.63x →2.69x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.3 pp over 3 years. Driven by asset turnover improving (0.32x → 1.48x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 0.32 | 2.63 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 0.35 | 2.42 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 1.48 | 2.69 | 10.4% |
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.