DuPont Decomposition
Why does HINDUNILVR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.9% = 23.6% × 0.80 × 1.64
Latest: FY2026
Profitability
Net Margin
23.6%
17.2% →23.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.73x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.44x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.8 pp over 5 years. Driven by net margin improving (17.2% → 23.6%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.2% | 0.73 | 1.44 | 18.1% |
| FY2023 | ₹0Cr | ₹0Cr | 17.0% | 0.81 | 1.45 | 20.1% |
| FY2024 | ₹0Cr | ₹0Cr | 16.9% | 0.78 | 1.53 | 20.1% |
| FY2025 | ₹0Cr | ₹0Cr | 17.6% | 0.76 | 1.62 | 21.6% |
| FY2026 | ₹0Cr | ₹0Cr | 23.6% | 0.80 | 1.64 | 30.9% |
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.