DuPont Decomposition
Why does MANAKCOAT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.7% = 4.6% × 1.17 × 2.16
Latest: FY2026
Profitability
Net Margin
4.6%
1.3% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.17x
1.33x →1.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.16x
4.45x →2.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.7 pp over 5 years. Driven by net margin improving (1.3% → 4.6%), asset turnover declining (1.33x → 1.17x), leverage falling (4.45x → 2.16x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.3% | 1.33 | 4.45 | 7.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 1.18 | 4.60 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.5% | 1.37 | 3.53 | 7.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 1.21 | 2.85 | 6.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.6% | 1.17 | 2.16 | 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.