DuPont Decomposition
Why does HALEOSLABS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.1% = 5.2% × 0.73 × 2.13
Latest: FY2026
Profitability
Net Margin
5.2%
7.3% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.97x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
2.34x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.5 pp over 5 years. Driven by net margin declining (7.3% → 5.2%), asset turnover declining (0.97x → 0.73x), leverage falling (2.34x → 2.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.3% | 0.97 | 2.34 | 16.6% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.79 | 2.34 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 0.77 | 2.21 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 0.88 | 1.98 | 10.2% |
| FY2026 | ₹0Cr | ₹0Cr | 5.2% | 0.73 | 2.13 | 8.1% |
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.