DuPont Decomposition
Why does HEADSUP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.1% = 98.2% × 0.08 × 1.19
Latest: FY2025
Profitability
Net Margin
98.2%
-1318.9% →98.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.03x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.18x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 62.3 pp over 3 years. Driven by net margin improving (-1318.9% → 98.2%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0.1Cr | -1318.9% | 0.03 | 1.18 | -53.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -687.6% | 0.04 | 1.17 | -31.0% |
| FY2025 | ₹0Cr | ₹0Cr | 98.2% | 0.08 | 1.19 | 9.1% |
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.