DuPont Decomposition
Why does HUHTAMAKI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.1% = 5.0% × 1.19 × 1.55
Latest: FY2026
Profitability
Net Margin
5.0%
2.4% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
0.40x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
2.31x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.9 pp over 4 years. Driven by net margin improving (2.4% → 5.0%), asset turnover improving (0.40x → 1.19x), leverage falling (2.31x → 1.55x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 0.40 | 2.31 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 54.2% | 0.30 | 1.74 | 28.5% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 0.32 | 1.62 | 1.0% |
| FY2026 | ₹0Cr | ₹0Cr | 5.0% | 1.19 | 1.55 | 9.1% |
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.