DuPont Decomposition
Why does MACPOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.8% = 9.7% × 1.20 × 1.53
Latest: FY2025
Profitability
Net Margin
9.7%
5.5% →9.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
0.38x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.48x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.7 pp over 3 years. Driven by net margin improving (5.5% → 9.7%), asset turnover improving (0.38x → 1.20x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 0.38 | 1.48 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.38 | 1.56 | 7.6% |
| FY2025 | ₹0Cr | ₹0Cr | 9.7% | 1.20 | 1.53 | 17.8% |
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.