DuPont Decomposition
Why does MANAKSIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.4% = 7.7% × 1.02 × 1.20
Latest: FY2025
Profitability
Net Margin
7.7%
15.6% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
0.85x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.26x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.5 pp over 4 years. Driven by net margin declining (15.6% → 7.7%), asset turnover improving (0.85x → 1.02x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.6% | 0.85 | 1.26 | 16.9% |
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.84 | 1.21 | 9.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.8% | 0.97 | 1.25 | 13.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 1.02 | 1.20 | 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.