DuPont Decomposition
Why does MAFATIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.7% = 2.3% × 2.21 × 2.27
Latest: FY2026
Profitability
Net Margin
2.3%
2.9% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.21x
0.82x →2.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.27x
1.78x →2.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.5 pp over 5 years. Driven by asset turnover improving (0.82x → 2.21x), leverage rising (1.78x → 2.27x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.9% | 0.82 | 1.78 | 4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 2.7% | 1.16 | 1.91 | 6.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.15 | 2.22 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 2.02 | 1.88 | 13.2% |
| FY2026 | ₹0Cr | ₹0Cr | 2.3% | 2.21 | 2.27 | 11.7% |
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.