DuPont Decomposition
Why does TTKHLTCARE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 10.2% × 0.62 × 1.20
Latest: FY2025
Profitability
Net Margin
10.2%
7.0% →10.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
1.07x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.69x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.9 pp over 4 years. Driven by net margin improving (7.0% → 10.2%), asset turnover declining (1.07x → 0.62x), leverage falling (1.69x → 1.20x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.0% | 1.07 | 1.69 | 12.6% |
| FY2023 | ₹0Cr | ₹0Cr | 88.8% | 0.62 | 1.23 | 67.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.62 | 1.21 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 10.2% | 0.62 | 1.20 | 7.7% |
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.