DuPont Decomposition
Why does MALUPAPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.2% = 0.3% × 1.64 × 24.62
Latest: FY2024
Profitability
Net Margin
0.3%
-3.0% →0.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.64x
1.36x →1.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
24.62x
9.01x →24.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 49.5 pp over 3 years. Driven by net margin improving (-3.0% → 0.3%), asset turnover improving (1.36x → 1.64x), leverage rising (9.01x → 24.62x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -3.0% | 1.36 | 9.01 | -36.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.5% | 1.54 | 23.72 | -164.3% |
| FY2024 | ₹0Cr | ₹0Cr | 0.3% | 1.64 | 24.62 | 13.2% |
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.