DuPont Decomposition
Why does HONAUT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.8% = 11.2% × 0.75 × 1.40
Latest: FY2026
Profitability
Net Margin
11.2%
11.6% →11.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.73x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.41x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~12%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.6% | 0.73 | 1.41 | 11.9% |
| FY2023 | ₹0Cr | ₹0Cr | 12.8% | 0.77 | 1.40 | 13.7% |
| FY2024 | ₹0Cr | ₹0Cr | 12.4% | 0.83 | 1.36 | 13.9% |
| FY2025 | ₹0Cr | ₹0Cr | 12.5% | 0.75 | 1.39 | 13.0% |
| FY2026 | ₹0Cr | ₹0Cr | 11.2% | 0.75 | 1.40 | 11.8% |
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.