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
9.5% = 6.0% × 0.86 × 1.84
Latest: FY2025
Profitability
Net Margin
6.0%
3.7% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.79x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
2.34x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 3 years. Driven by net margin improving (3.7% → 6.0%), leverage falling (2.34x → 1.84x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.79 | 2.34 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.2% | 0.77 | 2.21 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 0.86 | 1.84 | 9.5% |
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.