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
7.4% = 3.1% × 0.74 × 3.19
Latest: FY2026
Profitability
Net Margin
3.1%
-9.8% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.69x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.19x
2.39x →3.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 23.6 pp over 5 years. Driven by net margin improving (-9.8% → 3.1%), leverage rising (2.39x → 3.19x).
Historical Decomposition
Last 5 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 | 4.0% | 0.77 | 2.92 | 9.1% |
| FY2026 | ₹0Cr | ₹0Cr | 3.1% | 0.74 | 3.19 | 7.4% |
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.