DuPont Decomposition
Why does MADRASFERT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
87.4% = 3.5% × 0.99 × 25.36
Latest: FY2026
Profitability
Net Margin
3.5%
3.5% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
0.99x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
25.36x
25.36x →25.36x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 3.5% | 0.99 | 25.36 | 87.4% |
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.