DuPont Decomposition
Why does MANKIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.7% = 16.3% × 0.44 × 1.91
Latest: FY2025
Profitability
Net Margin
16.3%
18.4% →16.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.85x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
1.45x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.0 pp over 4 years. Driven by net margin declining (18.4% → 16.3%), asset turnover declining (0.85x → 0.44x), leverage rising (1.45x → 1.91x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.4% | 0.85 | 1.45 | 22.7% |
| FY2023 | ₹0Cr | ₹0Cr | 14.3% | 0.21 | 1.31 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 19.5% | 0.20 | 1.28 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 16.3% | 0.44 | 1.91 | 13.7% |
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.