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
6.4% = 5.9% × 0.73 × 1.48
Latest: FY2026
Profitability
Net Margin
5.9%
4.0% →5.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
1.14x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
2.18x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.7 pp over 5 years. Driven by net margin improving (4.0% → 5.9%), asset turnover declining (1.14x → 0.73x), leverage falling (2.18x → 1.48x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.0% | 1.14 | 2.18 | 10.1% |
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.90 | 1.39 | 9.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.85 | 1.32 | 9.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 0.89 | 1.44 | 9.8% |
| FY2026 | ₹0Cr | ₹0Cr | 5.9% | 0.73 | 1.48 | 6.4% |
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.