DuPont Decomposition
Why does MANCREDIT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 26.9% × 0.14 × 2.48
Latest: FY2025
Profitability
Net Margin
26.9%
44.6% →26.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.14x
0.10x →0.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.48x
1.30x →2.48x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 4 years. Driven by net margin declining (44.6% → 26.9%), leverage rising (1.30x → 2.48x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 44.6% | 0.10 | 1.30 | 5.7% |
| FY2023 | ₹0Cr | ₹0Cr | 38.0% | 0.10 | 1.81 | 7.1% |
| FY2024 | ₹0Cr | ₹0Cr | 31.9% | 0.12 | 2.15 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 26.9% | 0.14 | 2.48 | 9.3% |
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.