DuPont Decomposition
Why does MANGLMCEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 2.7% × 0.78 × 2.54
Latest: FY2025
Profitability
Net Margin
2.7%
3.4% →2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.23x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.54x
2.63x →2.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.2 pp over 3 years. Driven by asset turnover improving (0.23x → 0.78x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.23 | 2.63 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 0.21 | 2.55 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 0.78 | 2.54 | 5.3% |
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.