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
9.8% = 5.8% × 0.96 × 1.78
Latest: FY2026
Profitability
Net Margin
5.8%
11.3% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.79x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.78x
1.80x →1.78x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.4 pp over 5 years. Driven by net margin declining (11.2% → 5.8%), asset turnover improving (0.79x → 0.96x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 0.79 | 1.80 | 16.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.5% | 0.83 | 1.82 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 0.89 | 1.81 | 11.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 0.85 | 1.82 | 7.7% |
| FY2026 | ₹0Cr | ₹0Cr | 5.8% | 0.96 | 1.78 | 9.8% |
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.