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
5.9% = 18.0% × 0.28 × 1.16
Latest: FY2025
Profitability
Net Margin
18.0%
18.0% →18.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.28x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.16x →1.16x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 18.0% | 0.28 | 1.16 | 5.9% |
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.