DuPont Decomposition
Why does HUBTOWN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.7% = 23.1% × 0.10 × 2.40
Latest: FY2026
Profitability
Net Margin
23.1%
-75.0% →23.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.04x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.40x
3.65x →2.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.6 pp over 5 years. Driven by net margin improving (-75.0% → 23.1%), leverage falling (3.65x → 2.40x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -75.0% | 0.04 | 3.65 | -10.0% |
| FY2023 | ₹0Cr | ₹0Cr | 10.4% | 0.06 | 3.45 | 2.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -40.8% | 0.04 | 3.90 | -6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 11.4% | 0.08 | 2.25 | 1.9% |
| FY2026 | ₹0Cr | ₹0Cr | 23.1% | 0.10 | 2.40 | 5.7% |
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.