DuPont Decomposition
Why does EIHAHOTELS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.5% = 22.7% × 0.53 × 1.20
Latest: FY2026
Profitability
Net Margin
22.7%
6.6% →22.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.47x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.24x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.6 pp over 5 years. Driven by net margin improving (6.6% → 22.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.6% | 0.47 | 1.24 | 3.9% |
| FY2023 | ₹0Cr | ₹0Cr | 19.2% | 0.67 | 1.27 | 16.3% |
| FY2024 | ₹0Cr | ₹0Cr | 21.1% | 0.68 | 1.22 | 17.5% |
| FY2025 | ₹0Cr | ₹0Cr | 22.5% | 0.63 | 1.21 | 17.1% |
| FY2026 | ₹0Cr | ₹0Cr | 22.7% | 0.53 | 1.20 | 14.5% |
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.