DuPont Decomposition
Why does MANBA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 14.5% × 0.16 × 4.83
Latest: FY2026
Profitability
Net Margin
14.5%
10.4% →14.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.17x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.83x
3.70x →4.83x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.7 pp over 5 years. Driven by net margin improving (10.4% → 14.5%), leverage rising (3.70x → 4.83x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.4% | 0.17 | 3.70 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 13.3% | 0.16 | 4.67 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 18.5% | 0.17 | 4.85 | 15.5% |
| FY2025 | ₹0Cr | ₹0Cr | 15.9% | 0.16 | 3.97 | 10.3% |
| FY2026 | ₹0Cr | ₹0Cr | 14.5% | 0.16 | 4.83 | 11.1% |
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.