DuPont Decomposition
Why does TGBHOTELS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.9% = 3.7% × 0.34 × 1.45
Latest: FY2026
Profitability
Net Margin
3.7%
-76.1% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.20x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.76x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 28.6 pp over 5 years. Driven by net margin improving (-76.1% → 3.7%), asset turnover improving (0.20x → 0.34x), leverage falling (1.76x → 1.45x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -76.1% | 0.20 | 1.76 | -26.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 0.31 | 1.62 | 1.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -9.8% | 0.33 | 1.48 | -4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 0.32 | 1.53 | 2.5% |
| FY2026 | ₹0Cr | ₹0Cr | 3.7% | 0.34 | 1.45 | 1.9% |
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.