DuPont Decomposition
Why does MAHSEAMLES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 15.1% × 0.73 × 1.11
Latest: FY2025
Profitability
Net Margin
15.1%
22.8% →15.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.28x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.23x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 3 years. Driven by net margin declining (22.8% → 15.1%), asset turnover improving (0.28x → 0.73x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.8% | 0.28 | 1.23 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 18.0% | 0.18 | 1.15 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 15.1% | 0.73 | 1.11 | 12.3% |
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.