DuPont Decomposition
Why does MANAKSTEEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.4% = 1.5% × 1.18 × 1.85
Latest: FY2025
Profitability
Net Margin
1.5%
0.8% →1.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
1.77x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.45x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 3 years. Driven by asset turnover declining (1.77x → 1.18x), leverage rising (1.45x → 1.85x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 1.77 | 1.45 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.31 | 1.73 | 9.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.5% | 1.18 | 1.85 | 3.4% |
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.