DuPont Decomposition
Why does PARKHOTELS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.9% = 9.3% × 0.34 × 1.53
Latest: FY2026
Profitability
Net Margin
9.3%
-11.3% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.20x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
2.51x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.4 pp over 5 years. Driven by net margin improving (-11.3% → 9.3%), asset turnover improving (0.20x → 0.34x), leverage falling (2.51x → 1.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -11.3% | 0.20 | 2.51 | -5.5% |
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 0.36 | 2.45 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 12.3% | 0.38 | 1.23 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.38 | 1.30 | 6.5% |
| FY2026 | ₹0Cr | ₹0Cr | 9.3% | 0.34 | 1.53 | 4.9% |
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.