DuPont Decomposition
Why does STARHEALTH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.1% = 3.9% × 0.79 × 2.92
Latest: FY2025
Profitability
Net Margin
3.9%
-9.8% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
0.69x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.92x
2.39x →2.92x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.4 pp over 4 years. Driven by net margin improving (-9.8% → 3.9%), asset turnover improving (0.69x → 0.79x), leverage rising (2.39x → 2.92x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -9.8% | 0.69 | 2.39 | -16.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 0.75 | 2.48 | 9.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.9% | 0.80 | 2.68 | 12.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 0.79 | 2.92 | 9.1% |
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.