DuPont Decomposition
Why does ITCHOTELS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.0% = 19.9% × 0.30 × 1.16
Latest: FY2026
Profitability
Net Margin
19.9%
18.0% →19.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.28x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.17x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.1 pp over 2 years. Driven by net margin improving (18.0% → 19.9%).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 18.0% | 0.28 | 1.17 | 5.9% |
| FY2026 | ₹0Cr | ₹0Cr | 19.9% | 0.30 | 1.16 | 7.0% |
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.