DuPont Decomposition
Why does ASIANHOTNR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
71.4% = 58.9% × 0.21 × 5.89
Latest: FY2025
Profitability
Net Margin
58.9%
-95.6% →58.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.08x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.89x
6.30x →5.89x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 121.9 pp over 4 years. Driven by net margin improving (-95.6% → 58.9%), asset turnover improving (0.08x → 0.21x), leverage falling (6.30x → 5.89x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -95.6% | 0.08 | 6.30 | -50.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -33.2% | 0.16 | 9.68 | -52.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -29.4% | 0.18 | 22.73 | -116.8% |
| FY2025 | ₹0Cr | ₹0Cr | 58.9% | 0.21 | 5.89 | 71.4% |
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.