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
9.8% = 93.6% × 0.08 × 1.27
Latest: FY2025
Profitability
Net Margin
93.6%
47.8% →93.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.09x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.64x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 4 years. Driven by net margin improving (47.8% → 93.6%), leverage falling (1.64x → 1.27x).
Historical Decomposition
Last 4 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 | 93.6% | 0.08 | 1.27 | 9.8% |
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.