DuPont Decomposition
Why does HYBRIDFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 51.2% × 0.10 × 1.23
Latest: FY2026
Profitability
Net Margin
51.2%
47.8% →51.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.09x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.64x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by net margin improving (47.8% → 51.2%), leverage falling (1.64x → 1.23x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 47.8% | 0.09 | 1.64 | 6.8% |
| FY2023 | ₹0Cr | ₹0Cr | 20.6% | 0.07 | 1.64 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 56.5% | 0.07 | 1.60 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 68.4% | 0.11 | 1.27 | 9.8% |
| FY2026 | ₹0Cr | ₹0Cr | 51.2% | 0.10 | 1.23 | 6.1% |
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.