DuPont Decomposition
Why does MAMATA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.8% = 16.3% × 0.97 × 1.51
Latest: FY2025
Profitability
Net Margin
16.3%
11.5% →16.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.88x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
2.08x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 4 years. Driven by net margin improving (11.5% → 16.2%), leverage falling (2.08x → 1.51x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.5% | 0.88 | 2.08 | 20.9% |
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 0.87 | 1.79 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 0.98 | 1.80 | 27.0% |
| FY2025 | ₹0Cr | ₹0Cr | 16.3% | 0.97 | 1.51 | 23.8% |
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.