DuPont Decomposition
Why does MALLCOM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.4% = 5.6% × 1.05 × 1.61
Latest: FY2026
Profitability
Net Margin
5.6%
9.3% →5.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
1.27x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
1.64x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.0 pp over 5 years. Driven by net margin declining (9.3% → 5.6%), asset turnover declining (1.27x → 1.05x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 1.27 | 1.64 | 19.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 1.11 | 1.74 | 18.2% |
| FY2024 | ₹0Cr | ₹0Cr | 8.9% | 1.05 | 1.63 | 15.3% |
| FY2025 | ₹0Cr | ₹0Cr | 11.8% | 0.99 | 1.65 | 19.2% |
| FY2026 | ₹0Cr | ₹0Cr | 5.6% | 1.05 | 1.61 | 9.4% |
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.