DuPont Decomposition
Why does ETHOSLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.8% = 7.7% × 0.89 × 1.44
Latest: FY2025
Profitability
Net Margin
7.7%
6.4% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.24x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.39x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.7 pp over 3 years. Driven by net margin improving (6.4% → 7.7%), asset turnover improving (0.24x → 0.89x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 0.24 | 1.39 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.22 | 1.32 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 0.89 | 1.44 | 9.8% |
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.