DuPont Decomposition
Why does MAANALU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 1.9% × 2.69 × 1.68
Latest: FY2025
Profitability
Net Margin
1.9%
3.9% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.69x
3.32x →2.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
2.03x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.4 pp over 4 years. Driven by net margin declining (3.9% → 1.9%), asset turnover declining (3.32x → 2.69x), leverage falling (2.03x → 1.68x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.9% | 3.32 | 2.03 | 26.1% |
| FY2023 | ₹0Cr | ₹0Cr | 6.2% | 3.59 | 1.73 | 38.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.5% | 4.22 | 1.38 | 20.1% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 2.69 | 1.68 | 8.7% |
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.