DuPont Decomposition
Why does HTMEDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.1% = 0.1% × 0.44 × 2.36
Latest: FY2025
Profitability
Net Margin
0.1%
1.3% →0.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.32x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.36x
2.11x →2.36x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~0%. Driven by net margin declining (1.2% → 0.1%), asset turnover improving (0.32x → 0.44x), leverage rising (2.11x → 2.36x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.3% | 0.32 | 2.11 | 0.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -14.1% | 0.39 | 2.31 | -12.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.9% | 0.40 | 2.40 | -4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.1% | 0.44 | 2.36 | 0.1% |
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.