DuPont Decomposition
Why does HEALTHX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-13.6% = -8.4% × 1.12 × 1.45
Latest: FY2025
Profitability
Net Margin
-8.4%
99.5% →-8.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
0.49x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.55x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 89.5 pp over 4 years. Driven by net margin declining (99.5% → -8.4%), asset turnover improving (0.49x → 1.12x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 99.5% | 0.49 | 1.55 | 75.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -7.0% | 0.86 | 1.60 | -9.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.7% | 1.18 | 1.51 | 1.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.4% | 1.12 | 1.45 | -13.6% |
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.