DuPont Decomposition
Why does HYUNDAI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.1% = 7.8% × 2.02 × 1.72
Latest: FY2026
Profitability
Net Margin
7.8%
6.3% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.02x
1.64x →2.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.68x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.9 pp over 5 years. Driven by net margin improving (6.2% → 7.8%), asset turnover improving (1.64x → 2.02x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 1.64 | 1.68 | 17.2% |
| FY2023 | ₹0Cr | ₹0Cr | 8.0% | 1.71 | 1.72 | 23.5% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 2.60 | 2.47 | 56.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.3% | 2.26 | 1.85 | 34.6% |
| FY2026 | ₹0Cr | ₹0Cr | 7.8% | 2.02 | 1.72 | 27.1% |
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.