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%
6.8% →9.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
1.33x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.69x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 4 years. Driven by net margin improving (6.8% → 9.7%), asset turnover declining (1.33x → 1.20x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 1.33 | 1.69 | 15.2% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 1.45 | 1.44 | 13.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.0% | 1.34 | 1.51 | 20.2% |
| 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.