DuPont Decomposition
Why does HEIDELBERG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 5.0% × 0.84 × 1.82
Latest: FY2025
Profitability
Net Margin
5.0%
5.8% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.23x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
1.82x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 3 years. Driven by asset turnover improving (0.23x → 0.84x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.8% | 0.23 | 1.82 | 2.4% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 0.22 | 1.81 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 0.84 | 1.82 | 7.7% |
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.